The Central Bank of Honduras has issued a release to clarify its stance on the use of cryptocurrencies in the country. The Central Bank of Honduras stated that despite the growing popularity of cryptocurrencies in other countries, cryptocurrencies have no backing and are subject to high volatility, stating. transactions with cryptocurrencies are made under the responsibility and risk of the person executing them.”
The Central Bank of Honduras clarifies its stance on cryptocurrencies
While some countries are moving to regulate cryptocurrencies and integrate them as part of their economic systems, others still oppose such integration. The Central Bank of Honduras recentlyissued a statementclarifying its position on the use of cryptocurrencies within Honduras. The organization informed that according to national law, the only institution with the authority to issue money and guarantee the existence of an efficient payment system is the Central Bank of Honduras.
In Honduras, cryptocurrencies are in a legal gray area, as their existence has not yet been recognized by any legislation. For this reason, the bank warned its citizens, stating.
Since cryptocurrency assets have no support, are not regulated and their use is not guaranteed, they do not enjoy the protection granted by national law.
Rising Popularity
Another issue the organization mentions has to do with the volatility of crypto assets. The Central Bank of Honduras has stated that these assets could suddenly lose value, as they have lost more than 60% in the market since 2021. Similarly, the bank criticizes the use of these tools as a payment method, explaining that
Transactions made using them are under the responsibility and risk of the person making them.
This reaction by the Bank of Honduras is due to the growing popularity of cryptocurrency use in the country. Indeed, the Honduran cryptoeconomy of Prospera has adopted Bitcoin as legal tender, allowing citizens to pay taxes inBTC, which can be used to pay taxes in BTC
and to pay for the purchase of Bitcoins
. They are also exempt from paying capital gains tax on its use. However, the country as a whole has not adopted bitcoin as legal tender.
However, in March, some media reported that Honduran President Xiomara Castro had declared bitcoin as legal tender, and there were rumors that such legal tender adoption would happen. However, these rumors were ignored by the central bank, which clarified that this was not true.
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