Chile’s Conservative Shift: Why Bitcoin Won’t Become Legal Tender Anytime Soon

Chile's political pendulum swings right—but don't expect digital gold to follow.

The nation's recent conservative turn signals stability, not revolution. Traditional fiscal policy remains king, with central bank orthodoxy holding firm against cryptocurrency's volatile charm.

Regulatory Hesitation Defines the Landscape

Lawmakers prioritize taming inflation over embracing decentralized finance. The bureaucratic machinery moves slowly, favoring measured studies over bold monetary experiments. For now, Bitcoin exists in a regulatory gray zone—acknowledged but not adopted.

Banking Giants Hold the Line

Major financial institutions maintain their gatekeeper role. They're dipping toes into blockchain for backend efficiency, not front-end currency replacement. The old guard still controls the pipes, and they're not handing over the keys to the monetary kingdom.

A Long Road Ahead for Crypto Advocates

Pro-Bitcoin voices face an uphill battle against institutional inertia. The political cost of monetary experimentation outweighs any perceived innovation benefit—at least for this election cycle. The conversation remains academic while pension funds stick to bonds and bankers collect their traditional spreads.

Chile's story mirrors a global pattern: politicians love disruptive rhetoric but cling to centralized control when actual policy gets written. The revolution will not be monetized—not while the existing system keeps cutting those familiar, comfortable checks.

TLDR

• Chile’s pension funds, totaling $229 billion, require strict regulations before adopting new asset classes like Bitcoin.
• The Central Bank of Chile focuses on CBDC analysis, not on making Bitcoin legal tender.
• Chile’s approach to crypto will likely be incremental, starting with regulated Bitcoin ETFs.
• Bank-level custody and clear compliance paths will be key to Bitcoin adoption in Chile.

As Chile’s conservative President José Antonio Kast takes office, Bitcoin enthusiasts wonder if the country will follow El Salvador’s path of making Bitcoin legal tender. However, Chile’s strong financial institutions, cautious central bank, and massive $229 billion pension system suggest a more gradual, regulatory approach. Instead of a swift policy change, Chile’s crypto future will likely unfold through carefully crafted financial products, such as Bitcoin ETFs, and bank-level services.

Chile’s Conservative Shift and Bitcoin Adoption

Following the election of conservative President José Antonio Kast, speculation about Chile adopting bitcoin as legal tender has surfaced. While some suggest a shift toward Bitcoin similar to El Salvador, experts caution that Chile is unlikely to follow that path.

The country’s strong institutional framework and structured regulatory environment will drive a more gradual adoption of Bitcoin, especially through regulated financial products and services.

Chile has made a sharp turn to the right with the election of Augusto Pinochet admirer José Antonio Kast.

A former minister in Gabriel Boric’s left-wing government tells Jacobin why it didn’t do enough to secure reelection: https://t.co/rr0ysMLVmt pic.twitter.com/ryJSU3Fy6J

— Jacobin (@jacobin) December 24, 2025

Chile’s approach to Bitcoin adoption will likely be driven by legal and technical factors rather than political decisions. In contrast to El Salvador’s top-down decision to make Bitcoin legal tender, Chile’s financial system and regulatory agencies will likely take a bottom-up, technocratic approach.

Institutional Framework and Central Bank Caution

One of the key factors that distinguish Chile from El Salvador is its cautious approach to cryptocurrencies, led by the Central Bank of Chile (BCCh). The BCCh has focused on analyzing Central Bank Digital Currencies (CBDCs) and has engaged with the Fintech Act’s open-finance regime. Rather than endorsing or pushing for Bitcoin to become legal tender, the central bank has concentrated on understanding the risks and regulations related to digital currencies.

The BCCh has already published two CBDC reports (in 2022 and 2024), which reflects its preference for a measured, careful approach to integrating digital currencies into the country’s financial system.

As of now, Bitcoin does not have a clear path to becoming legal tender in Chile, and the central bank has not shown any interest in making such a move. Experts believe that a push for Bitcoin adoption will come incrementally, with the establishment of regulations that ensure legal clarity and market stability.

The Role of Pension Funds and Regulation

Chile’s pension system, which is valued at approximately $229 billion, is another significant factor that could affect Bitcoin adoption in the country. The pension system, known as AFPs, plays a crucial role in the country’s financial landscape, and any introduction of new asset classes WOULD require careful governance, risk management, and valuation processes.

This system moves slowly and methodically when it comes to incorporating new investments, and it is unlikely that Bitcoin will become a part of the AFP portfolios without strict regulatory frameworks in place.

Mauricio Di Bartolomeo, co-founder of Ledn, an online Bitcoin lender, highlights that Chile’s pension system would need to adopt Bitcoin through formal, regulated channels such as local ETFs or other secure investment products. Bitcoin’s entry into Chile’s pension funds would be slow and cautious, with regulators ensuring that custodial standards, risk assessments, and pricing mechanisms are firmly in place.

Path Toward Gradual Adoption

Instead of a dramatic move to make Bitcoin legal tender, Chile is more likely to take an incremental approach to crypto adoption. Experts predict that local Bitcoin exchange-traded funds (ETFs) or exchange-traded notes (ETNs) could be among the first regulated financial products available to local investors. These products would allow investors to gain exposure to Bitcoin without directly holding the asset themselves, all while remaining compliant with Chilean financial regulations.

Bank-level custody will also play a critical role in facilitating Bitcoin adoption in Chile. Once the Central Bank and the Financial Market Commission (CMF) provide clear guidance on bank custody services for Bitcoin, local banks could begin offering Bitcoin services such as trading, lending, and custody. With the appropriate regulatory framework, traditional financial institutions could integrate Bitcoin into their offerings, allowing customers to gain access to the digital asset in a secure and compliant manner.

The eventual inclusion of Bitcoin within the Chilean pension system would likely be small-scale and cautious, with regulated products facilitating this process. As Mauricio Di Bartolomeo suggests, the size of Bitcoin allocations in Chile’s pension funds will depend on the regulatory environment and how safely the assets can be held, valued, and managed.