Chilean Lawmakers Push for Strategic Bitcoin Reserve
Chile may soon join the growing list of nations embracing Bitcoin at a strategic level. Multiple lawmakers are advocating for the establishment of a Strategic Bitcoin Reserve (SBR), according to Andrés Villagrán, a nation-state mining lobbyist. Villagrán has been tirelessly meeting with officials to highlight Bitcoin’s potential economic benefits and its role in the country’s future financial strategy.
Chile’s Path to Bitcoin Adoption
“In 2023, I embarked on an incredible journey with Bitcoin! I’ve had meetings with over 20 parliamentarians and several ministers explaining the benefits of Bitcoin to Chile and its people,” wrote Villagrán on X (formerly Twitter). His outreach gained momentum in mid-2024 as he collaborated with international Bitcoin advocates.
Villagrán’s efforts are supported by Dennis Porter, CEO of the US nonprofit Satoshi Act Fund, and Simon Collins, CEO of Stackr. Both have extensive experience in drafting Bitcoin-related legislation and promoting sustainable BTC mining practices. Together, they presented empirical data and research to Chilean officials, including government representatives and parliamentarians from across the political spectrum.
The Strategic Bitcoin Reserve Proposal
During November 2024, the team introduced the concept of a Strategic Bitcoin Reserve to members of President Gabriel Boric’s administration and key parliamentarians such as Deputy Andrés Giordano (Frente Amplio) and Deputy Juan Santana (Socialist Party). Drawing from examples in Pennsylvania, Ohio, and Texas, they outlined the potential benefits of adopting Bitcoin as part of Chile’s financial strategy.
Deputy Gael Yeomans of the Social Convergence party proposed creating a “Bitcoin Bench” (Bancada Bitcoin), a specialized group dedicated to studying international Bitcoin legislation and drafting related bills. Villagrán lauded the initiative, emphasizing the importance of a bipartisan approach: “I believe it would be ideal for this Bitcoin Bench to be from left to right.”
Challenges and Opportunities
Despite the growing support, the proposal faces challenges. The Central Bank of Chile has historically expressed skepticism about Bitcoin’s role as a reserve asset, citing concerns over security, liquidity, and compliance with IMF standards. In December 2024, the bank rejected similar ideas due to these regulatory hurdles.
Villagrán remains undeterred. He plans to meet with the Ministry of Finance and all senators and deputies in 2025 to present the SBR proposal. Notably, Chilean law permits the Central Bank to hold Bitcoin, providing a legal foundation for future discussions.
Latin America’s Bitcoin Movement
Chile’s exploration of a Strategic Bitcoin Reserve reflects a broader trend in Latin America. In November 2024, Brazilian lawmakers proposed allocating 5% of Brazil’s foreign reserves to Bitcoin as a hedge against economic uncertainties.
El Salvador stands as a pioneer in this movement, being the first nation in the world to adopt Bitcoin as legal tender in 2021. Under President Nayib Bukele’s leadership, the country implemented the Bitcoin Law, allowing citizens and businesses to transact in Bitcoin. El Salvador also established a $150 million Bitcoin Trust to facilitate transactions and launched initiatives like Bitcoin-backed bonds to fund national projects. El Salvador continues to buy at least one bitcoin per day.
These efforts have positioned El Salvador as a trailblazer in integrating Bitcoin into a national economy, inspiring other nations in the region, including Chile, to consider similar strategies.
Looking Ahead
The advocacy for a Strategic Bitcoin Reserve highlights a potential turning point for Chile’s economic strategy. If successful, the initiative could position Chile as a leader in Bitcoin adoption, bolstering its financial resilience and economic independence.
Villagrán’s optimism and ongoing efforts underscore the transformative potential of Bitcoin: “In 2025, we will have meetings with the Ministry of Finance, as well as all senators and deputies, to make Bitcoin an essential part of the country’s economy.”
As the conversation around Bitcoin in Chile evolves, the world will be watching to see if this “long and narrow strip of land” can pave the way for Bitcoin’s integration into national financial systems.