New Constitution of Chile must include bitcoin as a valid form of money

Key facts:
  • The new Magna Carta can establish the foundations that support a regulatory framework for Bitcoin.

  • The cryptocurrency can become legal tender thanks to independent initiatives.

The Constituent Convention that will draft the new Magna Carta of Chile received the proposal of a regulation that allows bitcoin (BTC) to be recognized as a valid form of money. This will establish the bases on which cryptocurrency can be legislated, according to specific needs adapted to the cryptocurrency and decentralized finance (DeFi) industry.

By incorporating in the Constitution the foundations based on the decentralization of money, the economic rights of Chileans will be protected. First of all, because the monetary policy of Bitcoin, for example, it is programmed, it is collaborative and it offers an opportunity for improvement.

It is also sought that the cryptocurrency industry has an appropriate space for its development and that the traditional financial system coexists with decentralized finance


According to Miguel Klagges, president of the NGO Bitcoin Chile, there is a tough banking oligopoly in the country that has come together to impose high access barriers to the DeFi industry, which prevents an evolution in the Chilean market. For this and other compelling reasons, the civil society group that it represents is working intensely on the proposal presented to the Constitutional Convention with the aim of establish fundamental rights and principles that benefit the use of bitcoin.

A long road of debates and considerations awaits the standard proposal of the NGO Bitcoin Chile, also known as the Chilean Association of Cryptotechnologies. His initiative is one of many that are under discussion to be included in the final text.

The draft of the new Constitution must be ready on July 4 and after that, it will be submitted to an exit plebiscite in which Chileans will vote to approve or reject the new Magna Carta.

From a very fundamentalist point of view, those of us who understand and have studied Bitcoin know that its protocol regulates itself because it incorporates clear rules of the game. However, we understand that if we want to contribute to the adoption of bitcoin and other technologies of a distributed nature, a regulatory framework is necessary. This is because there is a significant sector of the population that trusts what the regulators establish to take the first step and test new technology.

Miguel Klagges, president of the NGO Bitcoin Chile.

Chilean bitcoiners have presented a proposal for decentralized finance to be part of the new rules of the game that will govern the country. Source: Twitter/@achicrip.

However, building a path from the constitution, to later establish a regulatory framework for the cryptocurrency industry, has its challenges and the Bitcoin non-governmental organization is aware of it.

If the set of regulations later ends up restricting the cryptocurrency industry in Chile, then it will mean a big setback. “We know it’s a dangerous step, but we believe that – if we do it carefully – a good job can be done,” added Klagges.

In that sense, if everything goes according to plan, The effectiveness of the plan for Bitcoin to conquer Chile will have been demonstrated that are currently drawn.

Bitcoin to the conquest of Chile

Chile is not among the countries in the world with the highest growth of owners of bitcoin and other cryptocurrencies, but during the exclusive interview that Klagges granted to CriptoNoticias, he said that the adoption of cryptocurrency is registering a significant rise in the country.

“During the past year the adoption of bitcoin in Chile increased. We also noticed that there was an increase in participants in the activities that we carry out in the NGO, so that shows that there is greater interest from Chileans for cryptocurrency », he said.

And although adoption is gaining momentum, he adds that there is still a lot of work to be done, especially from an educational point of view, since he believes thatfinancial education must include bitcoin and not just focus on the traditional system.

We believe that we should encourage cryptocurrency education from the ground up. For this reason, from the Bitcoin Chile NGO we are going to start giving talks in schools so that children know the advantages offered by the decentralized economy. We will also go to the universities, where future professionals are who must know how they can use decentralized finance for the benefit of society.

Miguel Klagges, president of the NGO Bitcoin Chile.

The interest of Chileans around Bitcoin is increasing. Source: Adobe Photos.

At the same time, Chile requires that legislators know in detail the fundamentals of bitcoin, so that the formulation of rules does not end up limiting the benefits than the cryptocurrency pioneer can provide to society.

In this sense, Klagges comments that some members of the Bitcoin Chile NGO are part of the advisory council of the Comptroller General of the Republic. And from there they have been creating awareness about the great potential of the bitcoin blockchain to increase levels of transparency and counter corruption

We believe that it has been a good effort because now the State authorities have a much more positive outlook regarding Bitcoin technology. It has already been given that this cryptocurrency has 13 years of history and that like everything it has positive and negative aspects, but that the positives prevail. So in this sense we believe that we have had a good rapprochement and that on this side we can be calmer that officials work with greater awareness of the typical biases, fallacies and myths that exist about the ecosystem.

Miguel Klagges, president of the NGO Bitcoin Chile.

Bitcoin from the perspective of the government of Gabriel Boric

The Chilean bitcoiner community has had positive approaches with the outgoing government of Sebastián Piñera, but on March 11 Gabriel Boric will take office to become the youngest president of the country’s history. Therefore, the obligatory question is how does the new Chilean Executive view bitcoin?

Klagges replies that the prospects of the new government around bitcoin are good. So much so, that Giorgio Jackson, the next Secretary General of the Presidency, can be a great ally. He already enjoys the sympathy of the bitcoin community, since two years ago he participated in a thematic conference organized in Congress in which he demonstrated extensive knowledge of the cryptocurrency ecosystem.

Giorgio Jackson said he has known about Bitcoin since 2012, but has been somewhat skeptical of its protocol. Source: Youtube/

We believe that Jackson could be an ally to advance in terms of bitcoin regulation in Chile, despite the fact that at this time, there is already a bill to which we [la ONG Bitcoin Chile] We have not had access yet because we are focused on the constitutional issue. But now that there are some regulatory attempts, it is clearly going to be super important that the new authorities can summon the people in charge of being able to legislate on bitcoin and be able to bring the bills to Congress.

Miguel Klagges, president of the NGO Bitcoin Chile.

Regarding the possibility that the new Boric government decrees a bitcoin law as Nayib Bukele did in El Salvador, Klagges believes that it is unlikely. Even so, he does not rule out the possibility that bitcoin can be converted into legal tender in Chile if it is proposed independently from civil society.

What we hope most is that the laws in favor of Bitcoin are not coercive, nor that they exhaust the freedoms of people. Above all, I think that the most important part is that it is precisely a law that establishes rights for people and possibilities for defense. In short, I think it is super important to establish this regulatory framework, more than anything, in favor of the citizenry, and it is not precisely to prohibit or censor, but to protect it.

Miguel Klagges, president of the NGO Bitcoin Chile.

On the other hand, as reported by CriptoNoticias last December, a bill called “BitCoin” was presented to the Chilean congress, promoted by the deputy and senator Karim Bianchi.

The legislator said that the bill seeks that every day more people in Chile can carry out transactions without being discriminated against. He points out that “cryptocurrencies are an instrument that democratizes economic power and eliminates the barriers that the Chilean population has in the traditional financial market.”

Enjoy of the full interview with Miguel Klagges on the CriptoNoticias YouTube channel.