The Central Bank of Honduras, or BCH, has responded to rumors that the country is likely to accept Bitcoin (BTC) as a legal tender, like its neighbor El Salvador, and the answer seems to be no.
In a statement on Wednesday, the Central Bank of Honduras said that bitcoin is “currently” unregulated in the country and not recognized as a legal tender in many other countries. BCH has reaffirmed its authority under the Honduran Constitution, which is the “sole issuer of banknotes and coins” which is the legal tender in the country.
“BCH does not control or guarantee transactions that use cryptocurrencies as a means of payment,” the central bank said in a translated statement. “Any transaction made with this type of virtual asset is the responsibility and risk of those who perform it.”
The central bank added that it continues to study a “conceptual, technical and legal analysis” of the possibility of introducing a digital central bank currency, or CBDC, in Honduras. BCH stated that the central bank’s digital currency will be considered a legal tender in the country and regulated accordingly.
Related topics: With Bitcoin debut in El Salvador, Honduras and Guatemala Discover CBDC
Several news sources reported this week that Honduran President Xiomara Castro is considering recognizing Bitcoin as a legal tender. El Salvador, which borders Honduras to the west, used cryptocurrencies as legal tender in September 2021 and has since planned to build a billion-dollar “Bitcoin City” with crypto-mining powered by geothermal energy from the country’s volcanoes.
Other countries are also trying to follow El Salvador’s leadership when it comes to adopting cryptocurrencies. In February, a Mexican senator said she plans to present a bill to the country’s congress in 2022 that proposes converting bitcoin into a legal tender, a bill similar to El Salvador’s bitcoin law. The representative from the island nation of Tonga, more than 10,000 kilometers from Honduras, is also working on legislation that can see the country recognize cryptocurrencies as legal tender by mid-2023.