Central Bank of Honduras Warns About the Dangers of Using Cryptocurrency – Regulation Bitcoin News – Bitcoin News

by Sergio Goschenko
The Central Bank of Honduras has published a release that seeks to clarify the stance the institution takes about the use of cryptocurrencies in the country. The organization states that even with the popularity such instruments have attained in other countries, cryptocurrencies have no backing of any sort, and are also affected by high levels of volatility. “Any transaction carried out with them will be under the responsibility and risk of the person who performs it.”
While some countries have moved to regulate and integrate cryptocurrencies as part of their economic system, others are still opposing such integration. The Central Bank of Honduras has recently issued a statement that clarifies its position on the utilization of cryptocurrencies on Honduran soil. The organization informed that according to national laws, the only institution authorized to issue money and to guarantee the existence of an efficient payment system is the Central Bank of Honduras.
Cryptocurrencies are still in a legal gray area in Honduras, as their existence is not acknowledged in any bill yet. Due to this, the bank warned citizens about them, stating:
Cryptocurrency assets do not have support, so they are not regulated nor is their use guaranteed, therefore, they do not enjoy the protection granted by national laws.
Another problem the organization mentions has to do with the volatility of crypto assets. The Central Bank of Honduras states that these assets can lose value abruptly, as they have been doing since 2021, losing more than 60% in the market. In the same way, the bank criticizes the use of these tools as a payment method, explaining that:
Any transaction carried out with them will be under the responsibility and risk of the person who performs it.
This reaction of the Honduran Bank has been caused by the rising popularity of cryptocurrency usage in the country. In fact, Prospera, a crypto-economic zone in Honduras, has adopted bitcoin as legal tender, allowing its citizens to pay taxes with BTC, and exempting them from paying capital gains tax on its use. However, the country as a whole has not adopted bitcoin as a legal tender.
However, there were rumors in March about such legal tender adoption coming to fruition, when some media outlets reported about Xiomara Castro, the Honduran president, declaring bitcoin as legal tender. However, these rumors were disregarded by the central bank, which clarified this was not true.
What do you think about the stance of the Central Bank of Honduras on cryptocurrency? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse
United Arab Emirates (UAE) airliner, Emirates, has announced plans to launch non-fungible tokens (NFT) and experiences in the metaverse for its workers and customers. The launch aligns with UAE’s digital economy and virtual assets initiatives. First Projects Already Underway The … read more.
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.

Check all the news here


Leave a Reply

Next Post

Cryptocurrency for everyone, or why WhiteBIT created trading pairs with Eurocurrency - The Munich Eye

Wed Aug 3 , 2022
LatestThe main reason why I once decided to deal with cryptocurrencies is my belief that blockchain technologies will change the world and rewrite the history of human civilization. No matter how skeptical some are today, it will happen sooner or later. More precisely, it is already happening. This process has […]
%d bloggers like this: