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In a global context where powers such as the United States and Brazil are evaluating the incorporation of Bitcoin to their reserves, Chile is categorical in its rejection. The Central Bank has been clear in pointing out that cryptoassets do not satisfy the legal or technical criteria required by a store of value, such as stability and predictability.
In fact, in the United States, President-elect Donald Trump proposed the creation of a strategic Bitcoin reserve, suggesting a phased acquisition of 200,000 Bitcoin annually over five years.
As for Brazil, the bill presented by Congressman Eros Biondini seeks to establish a Sovereign Strategic Reserve of Bitcoin (RESBit). The proposal contemplates allocating up to 5% of the country’s international reserves to acquire the digital asset, arguing that it could strengthen economic stability and serve as collateral for the Central Bank’s future digital currency.
Likewise, the national deputy for the province of Buenos Aires, Martín Yeza, proposed that the Central Bank of the Argentine Republic (BCRA) buy, safeguard and mine Bitcoin, and that part of its reserves be kept in that Cryptocurrency.
Chile and Bitcoin: A decision contrary to the global trend
Now, the decision of the Central Bank of Chile was announced after consultations carried out by local media, in the midst of international debates about the potential use of Bitcoin as a strategic asset by countries such as the United States and Brazil.
Specifically, the Central Bank highlighted that the main objective of international reserves is to guarantee the economic and financial stability of the country in the face of possible external crises. As he explained, the assets that make up these reserves must meet security, liquidity and quality criteria defined by international organizations, such as the International Monetary Fund (IMF).
Chilean legal framework prevents adding Bitcoin to reserves
Indeed, the Central Bank of Chile said: “Bitcoin or other cryptoassets do not meet these criteria, mainly due to their high volatility and lack of institutional support.”
At the same time, he stressed that the Constitutional Organic Law that governs the Central Bank establishes that reserves must be composed of assets such as gold, credit titles and instruments issued or guaranteed by States or globally recognized financial organizations.
By the way, Chile’s current gold reserve, which barely reaches 0.25 tons, pales in comparison to the past. In 1973, the country had almost 20,000 million escudos in gold, a figure equivalent to about $700,000 million today. This drastic reduction in gold reserves, which today barely represent $15.7 million, reveals a significant change in Chilean monetary policy.
From the issuing institute they emphasized that their mission is to “guarantee the economic and financial stability of the country”, so the option of diversifying international assets with this or other cryptocurrencies is not even a point to be discussed.
Finally, what do you think about this position of the Central Bank of Chile in the face of the growing global interest in cryptocurrencies? Leave your feelings in the comments box.
I say goodbye with this phrase from Michael Saylor: «Bitcoin is the best asset you can have. The numbers explain it by themselves.
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