In a press release, the Central Bank of Honduras discusses its position regarding cryptocurrency usage in Honduras. The Central Bank of Honduras stated that cryptocurrencies, regardless of their popularity in other countries has little backing. They also suffer from high volatility and lack any support. “Any transaction carried out with them will be under the responsibility and risk of the person who performs it.”
Central Bank of Honduras clarifies its position on cryptocurrency
Although some countries have taken steps to incorporate cryptocurrencies into their economy, others continue to oppose such integration. Recent statements from the Central Bank of Honduras clarify its position about the usage of cryptocurrencies in Honduran. According to the organization, only the Central Bank of Honduras is authorized to issue and guarantee an efficient payment system.
As their existence has not yet been recognized in any Honduran bill, cryptocurrencies remain in legal gray. The bank issued a warning to citizens regarding them:
The cryptocurrency assets aren’t supported, and they don’t get the regulation or guarantee of their use. Therefore, they don’t enjoy national law protection.
Popularity is Increasing
A second problem is the volatility of crypto assets, which the organisation also mentions. According to the Central Bank of Honduras, these assets are subject to sudden losses of value, which they have done since 2021. They also lost more than 60% on the market. The Central Bank of Honduras also objects to the use these tools for payment, explaining:
They will assume all risk and responsibility for any transaction they perform.
The Honduran bank’s reaction to cryptocurrency use in Honduras is a result of its growing popularity. Prospera is a crypto-economic area in Honduras that has made bitcoin its official currency. It allows citizens to use BTC as a payment method and does not have capital gains taxes. The country has yet to adopt bitcoin as its legal tender.
There were rumors about legal tender adoption in March, as media reported that Xiomara Cruz, Honduran President, declared bitcoin legal tender. The central bank disregarded these rumors, and clarified that this wasn’t the case.
How do you feel about the Central Bank of Honduras’ stance regarding cryptocurrency? Leave a comment below.
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