Central Bank of Honduras Discredits Bitcoin Legal Tender Speculation

The central bank of Honduras released a clarification on crypto assets like bitcoin on March 23, stating that digital currencies are not legal money nor regulated in the nation. The statement, which was made via the official Twitter account of Honduras' central bank, comes after much anticipation that Honduran President Xiomara Castro will declare bitcoin legal cash in the country.

Despite rumors, the Central Bank of Honduras has said that Bitcoin and other crypto assets are not legal tender in the country.

There have been a lot of reports recently that the 56th president of Honduras, Xiomara Castro, may legalize bitcoin in the country. According to some sources, Honduras' administration may make a statement this week or in the "coming days." The central bank of Honduras, however, put the rumors to rest on March 23, stating that crypto assets are not legal tender nor regulated in the country.

"Bitcoin is a virtual financial asset (also known as cryptocurrency) that is currently unregulated in our nation and does not have the status of legal money in most countries," the central bank letter states.

The central bank of Honduras is also the "sole issuer of banknotes and legal tender coins in the national area," according to the country's central bank. The bank's notification emphasizes that Honduras' central banking system "does not oversee or guarantee the actions carried out using cryptocurrency." Essentially, the bank emphasizes that "those who carry it out" are solely responsible for every transaction involving a virtual asset.

Despite the fact that bitcoin and other crypto assets are not regulated nor legal in Honduras, the central bank says it is "evaluating the relevance of accepting technological innovation." The bank is still looking at the technological and legal aspects of "releasing a central bank digital currency (CBDC)."

The CBDC of Honduras would theoretically have "the quality of being recognized as legal money in the country, and so is controlled and supported by the [central bank of Honduras]."

Source: bitcoin.com