Central Bank of Honduras Discredits Bitcoin Legal Tender Speculation

There have been a lot rumors suggesting that the 56th President of Honduras Xiomara Castro could legalize bitcoin in Honduras. reported that a statement may be made by the Honduran government this week, or in the coming days. The rumors were dispelled by the central bank of Honduras on March 23. The statement noted that crypto assets are not legal tender or regulated in Honduras.

Honduras’ central banking letter clarifies that Bitcoin is a virtual financial asset (also known by cryptocurrency) and is therefore not regulated in any country.

Further, the country’s central banking system explains that the central bank in Honduras is the only issuer of legal tender coins and banknotes within the territory. The bank notice states that the central banking system of Honduras ‘doesn’t supervise or guarantee operations using cryptocurrencies. The bank emphasizes that transactions made with virtual assets are the sole responsibility of the ‘those who perform them.

Although bitcoin and other cryptocurrency assets are not legal or regulated in Honduras the central bank said that it was still considering the importance of technological innovation. The bank continues to examine the legal and technical implications of issuing a central bank digital money (CBDC).

The CBDC of Honduras would theoretically have the characteristic of being legal tender in the country. It is therefore regulated and supported by the [central bank]

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