Bitcoin is currently 'not regulated' in Honduras, the country’s central
Honduras’ central bank says there are no such plans, although they acknowledge they are looking into the feasibility of a central bank digital currency (CBDC).
Bitcoin as a legal tender chatter in the country had dominated Crypto Twitter chatter for much of the week.
The Central Bank of Honduras (BCH) has released a statement noting that country is not set to adopt Bitcoin as legal tender.
In an official statement published Wednesday, the central bank maintained that it was the only authority in Honduras charged with the issuance of legal tender.
The bank’s notice follows a few days of increased chatter on Crypto Twitter and other social platforms that Honduras was poised to follow neighboring El Salvador in adopting BTC as legal tender.
“Bitcoin for the moment in our country is not regulated,” the bank said in comments touching on regulation and use of virtual assets in the country.
The statement went on to clarify that BCH did not “supervise or guarantee operations carried out with cryptocurrencies as means of payment.”
According to the central bank, it’s the users who will bear the responsibility and risks that might be associated with any transactions done using crypto assets.
But while the bank dismissed the BTC legal tender question as rumours, it did acknowledge it was examining the possibility of launching a central bank digital currency (CBDC).
If and when such a CBDC is issued, then it would become legal tender and proper regulations instituted to streamline its use within the law.
El Salvador remains the only sovereign nation to anchor Bitcoin as legal tender into its laws, with its Bitcoin Law coming into effect in September 2021.
Alex Gladstein, the chief strategy officer at nonprofit Human Rights Foundation (HRF) says the Honduran government’s stance and decision to go for a CBDC is likely to be what most governments “choose.” But he notes that this only “underscores how exceptional BTC adoption on El Salvador really is.”
Honduras appears to be taking a pass on Bitcoin, and is instead going the Central Bank Digital Currency route.
Choosing monetary control over monetary freedom.
This is the likely move for most governments, and underscores how exceptional BTC adoption in El Salvador really is https://t.co/4THd0C5NUp
— Alex Gladstein (@gladstein) March 23, 2022
Bitcoin was priced around $42,510 at the time of writing, 8% up in the past week.