The Central Bank of Honduras issued a press release aimed at clarifying the agency’s stance on the use of cryptocurrencies in the country. Even if such tools gain popularity in other countries, cryptocurrencies are not backed by any form and are also subject to high volatility, the group said. “Any transaction with them will be at the responsibility and risk of the person executing the transaction.”
Central Bank of Honduras clarifies stance on cryptocurrencies
While some countries have begun to regulate and integrate cryptocurrencies as part of their economic systems, others remain opposed to such integration. The Central Bank of Honduras recently issued a statement clarifying its stance on the use of cryptocurrencies on Honduras soil. The organization informed that, according to national law, the only institution authorized to issue currency and guarantee the existence of an effective payment system is the Central Bank of Honduras.
Cryptocurrencies are still in a legal grey area in Honduras as their existence has not been recognized in any bill. Therefore, the bank warns citizens to be aware of them, stating:
Cryptocurrency assets are unbacked and therefore unregulated, and their use is not guaranteed, so they are not protected by national laws.
Another issue mentioned by the group is related to the volatility of crypto assets. The central bank of Honduras said the assets could suddenly depreciate in value, as they have been doing since 2021, losing more than 60% in the market. Likewise, the bank criticized the use of these tools as a payment method, explaining:
Any transaction with them will be at the responsibility and risk of the person who executes that transaction.
This reaction from Honduran banks was prompted by the growing popularity of cryptocurrency use in the country. In fact, Prospera, a crypto-economic zone in Honduras, has adopted Bitcoin as legal tender, allowing its citizens to pay taxes on BTC and exempt their capital gains tax on their use. However, the entire country has yet to adopt Bitcoin as legal tender.
However, the adoption of this fiat currency was rumored to be imminent in March, when some media reported that Honduras President Xiomara Castro declared Bitcoin to be legal tender. However, the rumours were dismissed by the central bank and clarified that they were not true.
What do you think of the Central Bank of Honduras’ stance on cryptocurrencies? Let us know in the comments section below.
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