honduras

Bitcoin is ‘not regulated’ — Honduras’ central bank pushes back against legal tender rumors

March 23, 2022 Coin Telegraph

Bitcoin

The central bank said “for the time being” Bitcoin was not regulated in the country, but it was exploring the feasibility of introducing a CBDC.

The Central Bank of Honduras, or BCH, addressed rumors regarding the country potentially adopting Bitcoin as legal tender like its neighbor El Salvador — and the answer seems to be negative.

In a Wednesday statement, Honduras' central bank said “for the time being” Bitcoin (BTC) was not regulated in the country and not recognized as legal tender in many others. The BCH reiterated its authority under Honduras' constitution that it was the only authorized “issuer of banknotes and coins” considered to be legal tender in the country.

“BCH does not supervise or guarantee operations carried out with cryptocurrencies as means of payment,” said the central bank, according to a translated statement. “Any transaction carried out with these types of virtual assets is the responsibility and risk of those who do it.”

The central bank added it was continuing to study “with the conceptual, technical and legal analysis” the feasibility of introducing a central bank digital currency, or CBDC, in Honduras. The BCH said a CBDC would be considered legal tender in the country and regulated accordingly.

Several news sources reported this week that Honduran President Xiomara Castro was considering recognizing BTC as legal tender. El Salvador, which borders Honduras to the west, adopted the crypto asset as legal tender in September 2021 and has since planned to construct a $1-billion “Bitcoin City” with crypto mining operations powered by geothermal energy from the country’s volcanoes.

Holy cow! This is BIG news if true! Reports saying that Honduras may be next to make #bitcoin into legal tender! https://t.co/vSD5R7AY1F
— Lark Davis (@TheCryptoLark) March 22, 2022

Other countries have also been making pushes to follow El Salvador’s example in adopting crypto. In February, a Mexican senator said she planned to introduce a bill to the country’s congress in 2022 proposing BTC become legal tender — the bill is modeled after El Salvador’s Bitcoin Law. A lawmaker from the island nation of Tonga, more than 10,000 kilometers from Hondura, is also working on legislation which could see the country recognize cryptocurrencies as legal tender by mid-2023.

As Bitcoin debuts in El Salvador, Honduras and Guatemala study CBDCs

September 9, 2021 Coin Telegraph

CBDC

Honduras and Guatemala are studying central bank digital currencies and the value they could bring to their respective monetary systems.

Two Central American countries, Honduras and Guatemala, are taking a cue from their common neighbor’s adoption of Bitcoin (BTC), but they are taking a very different road.

Instead of embracing an existing cryptocurrency as a legal tender, like what El Salvador did, the central banks of Honduras and Guatemala are currently studying central bank digital currencies or CBDCs.

Following the approval of the board of directors, the Central Bank of Honduras kicked off a study “to determine the feasibility of conducting a pilot test issuing its own digital money or a central bank digital currency,” according to Honduras central bank president Wilfredo Cerrato’s remarks at a forum event in Tegucigalpa.

He said that the Central American Monetary Council or Consejo Monetario Centroamericano, the highest monetary authority in the region, should address the adoption of digital currencies.

In the northwestern corner of the region, the CBDC even has a name. Banco de Guatemala vice president Jose Alfredo Blanco said the digital currency — iQuetzal — would be named after the national bird of Guatemala, just like its fiat currency.

However, the central banks are not eager to integrate a new form of currency into their existing financial system without preparation. Blanco stressed that the committee to work on a central bank digital currency had been formed only six months ago, and it will take a long time to complete the investigation phase.

Central bank digital currencies have been gaining traction and interest in countries around the world. Nigeria's CBDC, the eNaira, is set to launch on Oct. 1, on the country’s 61st Independence Day. The Ukrainian government is also moving forward with its CBDC plans by giving the National Bank of Ukraine authority to issue a digital currency.

Buying Bitcoin and Ether Just Got Easier in Honduras With Cryptocurrency ATM

August 29, 2021 Bitcoin.com

Honduras gets its first Bitcoin ATM

August 27, 2021 Coin Telegraph

Bitcoin ATM

The “la bitcoinera” machine allows crypto enthusiasts to purchase BTC and ETH using the local fiat currency provided they are willing to scan their IDs and disclose certain personal information.

TGU Consulting Group, a Honduran company based in the capital of Tegucigalpa, has reportedly installed the country’s first Bitcoin ATM.

According to a Friday Reuters report, TGU chief executive Juan Mayen led the move to install the Bitcoin (BTC) ATM in one of the capital’s office buildings. The “la bitcoinera” machine allows crypto enthusiasts to purchase BTC and Ether (ETH) using the local fiat currency, lempira, provided they are willing to scan their IDs and disclose certain personal information.

Mayen said this was the first automated way to purchase Bitcoin in Honduras, but many software developers had been accepting crypto for payments. According to the TGU exec, many Hondurans have had to exchange cash for crypto in person, an action he described as “very inconvenient and dangerous” in the country — data from crowd-sourced platform Numbeo shows the level of crime in Honduras as “very high.”

Lawmakers in some Central America nations have been taking more pro-crypto positions as the market continues to grow. El Salvador is currently installing Bitcoin ATMs across the country in preparation for the cryptocurrency being accepted as legal tender starting on Sept. 7. At least one member of Panama’s congress has also proposed legislation for the country to adopt Bitcoin and other cryptocurrencies.

Data from Cointelegraph Markets Pro shows the price of BTC is $48,976 at the time of publication, having risen more than 3% in the last 24 hours. The ETH price is $3,272, having increased more than 4% over the same period.

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