The Central Bank of Chile has made it clear, Bitcoin isn’t making its way into their reserves anytime soon.
In a statement, the bank explained that cryptocurrencies like Bitcoin don’t meet the necessary requirements to be considered a viable investment for their assets.
No Bitcoin for Chile
As discussions around Bitcoin as a reserve asset heat up in Chile, the central bank was asked about the possibility of adding Bitcoin to its portfolio. The answer? No.
They stated that cryptocurrencies fail to comply with guidelines set by organizations like the International Monetary Fund, which are important for foreign reserve assets.
The bank shared that international reserves are meant to ensure economic and financial stability, especially during external shocks or changes in monetary policy.
To achieve this, assets must meet high standards for security, liquidity, and overall quality.
Unfortunately for Bitcoin fans, the central bank’s alleged experts concluded that neither Bitcoin nor other cryptocurrencies fit the bill.
Legal hurdles
Adding to the complexity, there are legal reasons preventing the inclusion of Bitcoin in their reserves.
The charter of the Central Bank of Chile lays out strict criteria for what can be included, limiting it to traditional assets like gold, government securities, and instruments guaranteed by foreign states or international financial institutions.
In short, the bank isn’t keen on switching to an asset with such volatility and uncertainty.
On the other hand, Brazil is taking a different approach, as they’ve introduced a bill in Congress to create a strategic Bitcoin reserve, wanting to lead the way in Latin America and beyond.
What this means for Chile
While this decision might disappoint some crypto investors in Chile, it reflects a cautious approach from the central bank.
As countries around the world grapple with how to handle cryptocurrencies, Chile is sticking to its traditional financial guns, for now at least.
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