Bitcoiners waiting for a “Bukele moment” in Chile are ignoring a $229 billion signal that matters more

Following the election of conservative President José Antonio Kast, there is speculation about whether Chile will follow El Salvador's path by adopting Bitcoin as legal tender. However, experts suggest this is unlikely due to Chile's strong institutional framework, which favors a technocratic, bottom-up approach over political theatrics. Key differences include the cautious stance of the Central Bank (BCCh), which focuses on CBDC analysis and existing Fintech regulations, and the massive $229 billion Chilean pension system (AFPs), which requires rigorous governance, risk, and custody checks before adopting new asset classes. Adoption is expected to proceed incrementally through regulated channels, starting with local spot Bitcoin ETFs/ETNs, followed by clear permission for bank-level custody and facilitation. Deal-killers would be central bank restrictions or punitive tax treatment, while catalysts include regulatory green lights for local ETFs and clear compliance pathways. The true signal for broader adoption will be banks offering Bitcoin services, which could eventually open the door for small allocations within the pension funds.

(Source：CryptoSlate)