The Central Bank of Honduras has responded to rumors that Bitcoin would become legal tender.
In a statement issued by the Central Bank of Honduras, the entity's officials have denied rumors about plans to make Bitcoin legal tender in the country, as its neighbor El Salvador did.
In the statement they point out that “For the moment” Bitcoin is not regulated in the country and is therefore not recognised as legal tender. The Central Bank of Honduras recalls that, according to the country's constitution, it is the only entity “authorised to issue banknotes and coins”.
“The Central Bank of Honduras does not supervise or guarantee operations carried out with cryptocurrencies as a means of payment", the Central Bank said in its statement. "Any transaction carried out with this type of virtual assets is the responsibility and risk of those who carry it out."
The Central Bank's statement was the entity's official response to the statements of the nation's president, Xiomara Castro, in which she indicated that Bitcoin would become legal tender in the country, following in the footsteps of its neighbor El Salvador.
Honduras: No to Bitcoin, yes to a CBDC
The Honduran entity's statement also indicates that they are working on carrying out a “conceptual, technical and legal analysis” on the feasibility of creating and introducing a central bank digital currency (CBDC) in Honduras. In this regard, the Central Bank points out that a CBDC would be legal tender.
Latin America and Bitcoin
Despite the statement from the Central Bank of Honduras, other Latin American countries are struggling to implement Bitcoin as legal tender in the country, although they are encountering various difficulties along the way.
Argentina was one of the main candidates to legalize cryptocurrency, however, the recent agreement with the International Monetary Fund (IMF), has ended the hope of the crypto community, since the government has indicated that The country will not encourage the adoption and use of cryptocurrency.
Separately, in February, a Mexican senator said she was working on a bill, based on President Bukele's, that would would propose that Bitcoin become legal tender.
Finally, a lawmaker from the island nation of Tonga is also working on legislation that could see the country recognize cryptocurrencies as legal tender by mid-2023.
