A tweet from Bitcoin evangelist Max Keizer triggered the comments on the alleged adoption of the cryptocurrency in Honduras. President Xiomara Castro reportedly stated that her country would join El Salvador in escaping the US dollar hegemony.
The Central Bank of Honduras (BCH) recently denied the alleged adoption of Bitcoin as legal tender in the Central American country. After a rumor on the social networks became viral, the Honduran issuing entity talked about the matter.
The financial institution highlighted its competencies concerning monetary matters in Honduras and the lack of regulations on cryptocurrencies in that country. The financial institution is the only issuer of Honduran legal tender banknotes and coins.
Many people expected Honduran President Xiomara Castro to declare Bitcoin legal tender. She reportedly stated Honduras has the right to escape the US dollar hegemony and advance towards the First World.
Max Keizer, a renowned Bitcoin communicator and evangelist, recently posted a Honduran flag on Twitter, saying it was already happening. In January, Nayib Bukele had predicted that at least two more countries would adopt Bitcoin as legal tender.
The Central Bank of Honduras recalled it did not supervise or guarantee transactions in cryptocurrencies as payment means in the country. They pointed out that those operations are under the responsibility and risk of those who conduct them.
Honduras Is on the Path of Creating a Central bank Digital Currency
In 2021, the Honduran diaspora contributed 20% of the gross domestic product of the Central American country.
Local media reported that remittances to Honduras reached USD 7.37 billion last year and registered a year-on-year increase of 23% in January 2022. The adoption of Bitcoin by the government could reduce the cost of money transfers from abroad and incorporate new state financing models.
Unlike El Salvador, the first country to adopt Bitcoin as legal tender, Honduras has the lempira (HNL) as its national fiat currency. At the time of writing this article, it is equivalent to USD 0.041. The BCH also reported that the economy achieved a year-on-year recovery of 8.2% after the COVID-19 pandemic.
Concerning the adoption of BTC and other cryptocurrencies, peer-to-peer trading is possible in Honduras through several exchanges. Likewise, the government installed the second Bitcoin ATM in Tegucigalpa, the capital of the Central American country. While that device allows selling Bitcoin, the previous one only allowed buying.
In September 2021, the president of the Central Bank of Honduras, Wilfredo Cerrato, issued an announcement. The official stated his country had begun feasibility studies to launch a pilot test of its CBDC.
He also considered that the Central American Monetary Council should address CBDCs in its policies, just as individual countries do. The BCH referred to the lack of regulation for cryptocurrencies, which is why it seeks to create a centralized digital currency.
Meanwhile, Bitcoin is trading at around USD 42,000 and has accumulated a 14% gain in the last week. Its daily trading volume is above USD 89,58 billion, and its market capitalization is about USD 860,75 billion, according to CoinGecko.
By Alexander Salazar
