Chile rules out incorporating bitcoin as a reserve asset

The Central Bank of Chile, the local regulatory body in monetary matters, indicated that bitcoin will not be incorporated as a reserve asset.

According to the entity, “cryptocurrencies do not meet the IMF criteria.” Hence the decision not to incorporate bitcoin into its treasury.

The authorities have indicated: “International reserves aim to maintain economic and financial stability in the face of adverse external shocks and the conduct of exchange rate policy. Therefore, they must meet high criteria of security, liquidity and quality, according to the definitions of the IMF to guarantee central banks their immediate availability with a limited impact on the market and efficient access in case they need to be used in periods of crisis.”

The Central Bank of Chile stressed that cryptocurrencies do not have these essential legal characteristics and, in addition, are affected by high volatility.

In the local scenario, “the law establishes narrow criteria for the assets that can be included in the books of the Central Bank of Chile. Specifically, the regulations limit reserve assets to “gold, securities, negotiable instruments, instruments issued or guaranteed by foreign states, central banks or international financial institutions.”

For now, Chile does not contemplate a change of assets to include cryptocurrencies, which represent a high risk for its reserves and to comply with the mandate to guarantee the economic and financial stability of the country.

M.Pino

Source: diariobitcoin

(Reference image source: Erling Løken Andersen on Unsplash)

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