The Central Bank of Honduras has published a release that attempts to clarify the institution’s stance regarding the use of cryptocurrencies in the country. The organization states that despite the popularity of such tools in other countries, cryptocurrencies have no support of any kind, and are also affected by high levels of volatility. “Any transaction made with them shall be under the responsibility and risk of the person who makes it.”
Central Bank of Honduras Clarifies Stance on Cryptocurrencies
While some countries have moved to regulate and integrate cryptocurrencies as part of their economic system, others are still opposed to such integration. The Central Bank of Honduras recently issued a statement clarifying its position on the use of cryptocurrencies on Honduran soil. The organization informed that in accordance with national laws, the only institution authorized to issue money and guarantee the existence of an efficient payment system is the Central Bank of Honduras.
Cryptocurrencies are still in a legal gray area in Honduras, as their existence has not yet been acknowledged in any bill. Due to this, the bank warned citizens about them, saying:
Cryptocurrency assets are not backed, therefore they are not regulated nor guaranteed their use, therefore, they do not enjoy the protections offered by national laws.
growing popularity
Another problem that the organization mentions is related to the volatility of crypto assets. The Central Bank of Honduras says these assets could suddenly lose value, as they have been doing since 2021, with the market losing more than 60%. Similarly, the bank criticizes the use of these instruments as a method of payment, explaining that:
Any transaction done with them will be subject to the responsibility and risk of the person who makes it.
This response from Honduran Bank is due to the growing popularity of the use of cryptocurrencies in the country. In fact, Prospera, a crypto-economic sector in Honduras, has adopted bitcoin as legal tender, allowing its citizens to pay taxes with BTC, and allowing them to pay capital gains tax on its use. discount from. However, not the entire country has adopted bitcoin as legal tender.
However, there were rumors about the adoption of such legal tender in March, when some media outlets reported on Honduran President Xiomara Castro declaring bitcoin to be legal tender. However, these rumors were disregarded by the central bank, which clarified that it was not true.
What do you think about the Central Bank of Honduras’ stance on cryptocurrency? Tell us in the comments section below.
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