The creation of a central bank digital currency or CBDC could help Honduras modernize its payments infrastructure and accelerate financial inclusion nationwide.
The Central Bank of Honduras continues preparations towards a possible launch of its own central bank digital currency or CBDC.
Recently, the monetary authority of Honduras launched a public consultation on the issuance of a CBDC. Over the next two months, the central bank expects to receive comments from parties interested in a digital currency, to gather the opinion of different actors in the financial, social and academic sectors, on the feasibility, advantages and adoption of these currencies. digital.
Through its website, the Central Bank of Honduras recognizes the need to modernize its payment systems, to offer citizens more innovative solutions that promote technological development and economic growth, as well as financial inclusion.
Although many expected Honduras to be the next country to adopt cryptocurrencies, to provide more efficient and inclusive financial services to its population, the country's Central Bank opted for the development of a CBDC.
Honduras evaluates the benefits of CBDCs
Currently, the Central Bank of Honduras is evaluating the advantages and risks of issuing a CBDC. This includes studying the technical, operational, economic and legal feasibility of issuing a digital version for the lempira, its legal tender fiat currency.
On the other hand, the monetary authority explained that the introduction of a central bank digital currency to the country could have a great impact on its financial and payments infrastructure.
Due to its characteristics, a CBDC could address the current challenges of the Honduran payment system and lead to a more seamless payment experience, improve interoperability between different payment systems, and ensure integration with cross-border transactions. According to the bank, these are the key objectives it seeks when modernizing its payments infrastructure and the reasons why it is evaluating the development and issuance of its own digital currency.
The opening of public consultation and the launch of a study on CBDCs is part of a strategic stage that will allow the central bank to determine the benefits and challenges of these digital currencies in the event of their eventual adoption in the country.
The adoption of cryptocurrencies in Honduras
Xiaomara Castro, president of Honduras, has applauded El Salvador's vision of adopting Bitcoin as legal tender to escape the hegemony of the dollar. However, until now he has not made an official statement about his position or that of the Honduran government regarding cryptocurrencies.
On the contrary, the Central Bank of Honduras did declare itself in March of last year as the only authority in the country to issue “banknotes and coins” of legal tender, making it clear that its intention is to evaluate the issuance of a CBDC. a digital currency that will be under its control, and not to adopt cryptocurrencies like its neighboring country did.
However, despite the hard-line stance of the Central Bank of Honduras towards cryptocurrencies, several initiatives in favor of Bitcoin are being developed in the country. For example, in the municipality of Santa Lucía, located in the department of Tegucigalpa, and in the community of Valle de Ángeles, located in the department of Francisco Morazán, citizens They use Bitcoin as a means of payment, since cryptocurrency allows them to more easily access financial services while entering the new digital economy.
Likewise, the underlying technology of Bitcoin, Blockchain, has also been accepted in Honduras, to the point that the Francisco Morazán National Pedagogical University and the Honduran Business Strategic Consulting make use of this technology to move towards digitalization.
The country also has a Bitcoin School on the island of Roatán dedicated to educating citizens about the enormous potential of this cryptocurrency and blockchain in the future of money.
Brazil advances in the development of its CBDC for the real
Meanwhile, in Brazil, the Central Bank has given a new name to its CBDC digital currency, which has been renamed drexBrazil is developing the digital real as a tool to accelerate the digitalization and modernization of the economy.
In Latin America, other countries have also shown interest or progress in the development of their own CBDCs, such as Jamaica, Guatemala, Uruguay, Chile and Peru, among others.
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