Multiple Chilean lawmakers are rallying for legislation to initiate a Strategic Bitcoin Reserve (SBR), and the news is making waves in the nation’s political circles. According to Andrés Villagrán, a prominent nation-state mining lobbyist, his ongoing efforts to promote Bitcoin’s economic advantages are gaining momentum. Sharing updates on X, he has reported positive discussions with various government officials about the potential for incorporating BTC into Chile’s financial strategy.
Chile’s Path To Bitcoin Adoption has been a personal mission for Villagrán. He expressed his enthusiasm by stating, “In 2023, I had meetings with over 20 parliamentarians and several ministers explaining the benefits of Bitcoin to Chile and its people.” His advocacy efforts have notably ramped up, particularly as he forges connections and builds a coalition in mid-2024.
Notable supporters of Villagrán include Dennis Porter, the CEO of Satoshi Act Fund, and Simon Collins, CEO of Stackr. Both have a rich history of legislative work and have emphasized sustainable BTC mining practices. Villagrán highlighted his collaboration with these experienced advocates: “At the beginning of 2024, I began meetings with many deputies from this long and narrow strip of land that is Chile […] I invited them to Chile to present empirical information backed by papers.”
In November 2024, the team presented the Strategic Bitcoin Reserve concept to government representatives, including notable members of President Gabriel Boric’s administration. Key discussions included exploring models from Pennsylvania, Ohio, and Texas, where similar proposals have emerged, primarily driven by Porter’s initiatives.
Adding to the dialogue, Deputy Gael Yeomans proposed the establishment of a “Bitcoin Bench” or Bancada Bitcoin. This would serve as a focused group to research and draft legislation tied to Bitcoin. Villagrán celebrated this initiative, stating, “I believe it would be ideal for this Bitcoin Bench to be from left to right,” showcasing his hope for bipartisan support.
While enthusiasm is growing, challenges lie ahead. The Central Bank of Chile has historically voiced skepticism about recognizing BTC as a national reserve asset. Last December, the central bank dismissed the SBR, citing regulatory concerns and adherence to IMF standards regarding the security, liquidity, and reliability of reserve assets.
Despite these obstacles, Villagrán’s optimism shines through. He aims to continue discussions with the Ministry of Finance and engage senators and deputies from various parties in 2025. “I want to make it clear, in 2025 we will have meetings with the Ministry of Finance to present the SBR, so that we can be one of the first countries where Bitcoin is an essential part of the country’s economy,” he asserted passionately.
Interestingly, Villagrán pointed out that Chilean law actually permits the Central Bank to hold Bitcoin, and he envisions further negotiations with the bank later this year to explore this pathway.
If Chile successfully implements a Strategic Bitcoin Reserve, it would join Brazil, which made headlines last November with a proposal to allocate 5% of its foreign reserves into BTC as a hedge against economic uncertainties.
At the time of this writing, BTC is trading at $99,260, just shy of the psychological barrier of $100,000. The potential for Chile to step onto this financial stage could signal a significant shift for Bitcoin in Latin America, and the eyes of the cryptocurrency world are firmly fixed on the unfolding events.
