Honduras will not adopt Bitcoin as legal tender, central bank implies

1648107854 honduras bitcoin

Today, the Central Bank of Honduras (CBH) has assured that for the time being the country has no plans to follow in El Salvador’s footsteps and reverse the FOMO sparked by rumors of bitcoin’s possible adoption as legal tender in the United States. Latin American Country.

According to the statement, the Central American country is maintaining a neutral position towards Bitcoin and cryptocurrencies in general. It doesn’t plan to change it for now. They emphasized that Bitcoin is still not accepted as legal tender in many countries and is not even adequately regulated.

The use of cryptocurrencies in Honduras has not been legalized or sanctioned.

The CBH stressed that cryptocurrencies were not regulated in the country; therefore, the problems or risks of Hondurans in transactions would fall on their shoulders.

“The BCH does not monitor or guarantee any transactions made with cryptocurrencies as a means of payment on the national territory, therefore any transaction made with these types of virtual assets is the responsibility and risk of those who carry them out.”

In addition, the CBH made it clear that due to the economic and geopolitical context experienced worldwide, it is still investigating whether it is a good idea to issue a CBDC, as many countries do, and emphasized that in a CBDC the control and the issuance of the coin falls directly on the state.

It is easier to issue a CBDC than to declare Bitcoin as legal tender.

As simple as President Nayib Bukele made it seem when he declared Bitcoin legal tender in El Salvador, the truth is that it is a complicated task given the volatility and lack of adoption that still exists worldwide.

For example, El Salvador has been under public scrutiny for the past few months after buying large amounts of Bitcoin at much higher prices than it currently is.

According to Reuters, El Salvador even had to postpone its Vulcano bonds due to the geopolitical context and the fall in prices in the markets. The new bond release date should be between May and June. Bukele denies this fact, stating that the delay happened for other reasons.

In other words, El Salvador has served as a “guinea pig” for other countries around the world so they can see how a country’s economy behaves after making such a drastic decision to make bitcoin as legal accept currency.

Surveys conducted by Coinmarketcap to predict which country will be next to use bitcoin as legal tender show that Paraguay comes in first, followed by Venezuela, a country that already has the “Petro”, a cryptocurrency that, despite it much hostility during its development, it has now gained a lot of ground in the country’s economy. Honduras is number 39.

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