Friday, September 30, 2022

Central Bank of Honduras Debunks Rumors on Crypto Legalization

In response to a rumor that was circulating by unconfirmed news sources, the Central Bank of Honduras (BCH) has cleared the air and announced on behalf of the republic that the nation currently has no plans in legalizing crypto. In the translated statement, BCH however noted that it is considering and analyzing a Central Bank Digital Currency (CBDC) which will later be approved as digital money. 

Expectations about Honduras accepting crypto as a legal tender became highly spurred after El Salvador, another country in the region of Central America made a dash into legalizing trades in Bitcoin (BTC) in September last year. The latter became the first nation in the world to approve cryptocurrency for payments in place of physical money.

News from unconfirmed sources started circulating, claiming that the President of Honduras, Xiomara Castro was poised to make a statement, announcing the resolutions to accept crypto as legal tender as well as regulate it, which has turned out to be false as confirmed by BCH in the issued statement.

According to the published statement, the Central Bank of Honduras has taken a stance against legalizing crypto because it doesn’t have the infrastructure to regulate it. The apex bank added that the digital asset class does not have the characteristics of physical money. Hence, whoever uses the virtual currency for trade is at risk and BCH will be held liable for such.

BCH however pointed further that it has autonomy in deciding the mode of operation of crypto in the republic as backed by the provisions made available by the Honduras constitution.

While the Central Bank of Honduras will not adopt crypto as a legal tender, it is however currently researching and analyzing a digital asset class, a Central Bank Digital Currency (CBDC) which will be regulated by the national financial reserve and accepted as a medium of exchange.

The decision of BCH on the adoption of cryptocurrency as legal tender amidst the rise in the price of Bitcoin which recently soared above $42,000 has attracted lots of reactions on social media. A Twitter user said, “#bitcoin would have brought incredible amount of capital and business to your country. Massive missed opportunity to be an early adopter.”

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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