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Chile may be the 2nd country in the world with BTC as legal tender

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The officialization of BTC as a currency in El Salvador generated a global wave of debate that reached the south of Latin America, more precisely to Chile.

The country could be the next to join this wave, becoming the second country in the world to adopt cryptocurrencies. But for that, a proposal presented to the Constituent Commission by the NGO BTC Chile needs to be approved.

The proposal has been pending at the constitutional secretariat since its presentation in December 2021. In addition, there is still no date set for its discussion in plenary.

As stated by the proponents, the project is divided into three main axes. If approved, the proposal would bring about a radical change in the constitution and in the lives of Chileans.

The three axes presented are: BTC as legal tender, blockchain for public data management and decentralized finance to eliminate inequality.

BTC in Chile

The goal is for the state to adopt these technologies to solve the problems that the current economic and administrative model presents.

According to Miguel Klagges, president of the NGO, with the proposal they seek to improve people’s lives through technology.

“A lot of people thought we were trying to pass a tax law and stuff like that. On the contrary, we are proposing fundamental principles and rights,” he said.

Organization specifies that the new constitution must include principles that recognize cryptocurrency as a valid form of money. In addition, it must incorporate fundamentals based on the decentralization of money.

“With this, we seek to eliminate the centralized power of the Central Bank, its impact on the economy and on inflation in Chile, which currently breaks monthly records”, he points out.

They also point out that the endless printing of unbacked banknotes by the Central Bank is unsustainable and produces inflation and harms the country’s most vulnerable sectors.

“It is enough time for the world to generate the necessary conditions to make the transition from a centralized economy to a decentralized one, with a reliable and predictable monetary policy. (…) BTC solves the problem of inflation, giving more than a century for the necessary adjustments to take place in the economy, until inflation is completely eliminated”, they say.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

7 thoughts on “Chile may be the 2nd country in the world with BTC as legal tender

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