Who would have guessed in 2009 that bitcoin, the first cryptocurrency, would one day be legal tender in a country? Many of his critics would not have voted in favor of this outcome. For all blockchain and cryptocurrency believers, this is a watershed moment. A sense of decentralization is spreading throughout the world, thanks to the efforts of small countries. Certain countries, maybe because they are too reliant on large powers, such as the United States, have chosen bitcoin. Following Salvador's decision to grant legal status to the first cryptomonnaie of the ecosystem in June 2021, other countries are looking to follow in the footsteps of its president, Nayib Bukele Ortez.
Timothy Maxwell Keiser, better known by his pen name Max Keiser, is an American journalist and cryptocurrency trader. Would Honduras be willing to follow in the footsteps of his older brother less than a year after Salvador announced the creation of a legal Bitcoin course?
It’s happening… pic.twitter.com/9RvtblXfoK
— Max💙🇸🇻 (@maxkeiser) March 18, 2022
Salvador's effect
Honduras, which shares a border with El Salvador, might be the first country to legalize bitcoin. A kind of forward movement aimed at reducing reliance on the US currency and centralized institutions.
Several reports claim that the two presidents, Nayib Bukele and his Honduran counterpart Xiaomara Castro, discussed the legalization of bitcoin on the Honduran soil. However, no official government source confirms the existence of these transactions.
It's true that Salvador is in charge of the FMI and does not want to repeal the well-known Bitcoin law, which gives the cryptocurrency legal status.
Honduras is a South American country
According to certain reports, Honduras may announce the legalization of bitcoin one year after El Salvador adopted the cryptography roi.
At this present, the Republic of Honduras' national "fiat" currency is the lempira, which is equivalent to 0.037% of a euro. The coin was named after the Indian chief Lempira, who was killed in the fight against the Spanish colonists in 1536.
Despite some Hondurans' ironic perceptions of the country, the Honduran economy is very independent and stable. She is based on the production of bananas, coffee, and African palms. Agriculture is the most important economic sector, followed by mining and tobacco manufacturing. Honduras' economy is the tenth-largest in Latin America in terms of nominal gross domestic product (PIB) and the tenth-largest in terms of PIB for purchasing power (PPA).
The President of Honduras
A decision with far-reaching consequences that resulted in the currency's depreciation. Historically, the dollar had a fixed exchange rate with gold, but this was changed by the Bretton Woods Agreements, which set the major lines of the international monetary system after the end of World War II. The dollar is no longer required to be issued at a fixed rate in relation to gold.
The official use of bitcoin as a means of payment can effectively ensure a country's stability and protect it from global economic imbalances. In the second instance, it has the potential to significantly boost interest in investments in the Honduran economy and tourism activity.
The first BTC counter
Honduras announces the launch of the first automatic bitcoin guichet on the country's territory in August 2021. This is the most convenient way for all residents to have access to this cryptomonnaie. This allows you to increase your usage and make your exchanges, purchases, and sales easier.
Juan Mayen, a 28-year-old TGU Consulting Group owner, was the driving force behind this movement dubbed "La Bitcoinera." Its goal was to make it easier for Hondurans to have access to bitcoin. Effectively, the need for cryptomonnaie on the territory has been steadily increasing, and allowing users access to these guichets allows them to increase their security.
CBDC Counter-Attack
As a result of the widespread rumors, Honduras' central bank has suspended all bitcoin transactions. She introduces the possibility of creating a CBDC, a central bank's digital currency.
It is here that the entire set of questions and shadow zones for decision-makers and large organizations such as banks and governments may be found. How will they be able to maintain the security of their currencies if everyone starts using bitcoin?
This is the same frayeur who persuaded China's government to take the bold step of completely shutting down cryptomonnaies on its soil in order to ensure the currency's security. Effectively, China has just seen the debut of the digital Yuan for all users. An ease of use, a simplicity of execution, but most importantly, the ability to keep usage centered on one's own currency in order to avoid putting the country's economy at risk.
Honduras' central bank has recently assumed control. She established who was the exclusive regulatory authority in charge of issuing banknotes and coins, as well as authorizing and approving the use of legal tender in the country. She disables cryptomonnaies and does not do any operations with this sort of action.
If this happens, Honduras would become the second sovereign country after Salvador, which adopted digital currency as legal tender a year ago. However, there is still an internal war going on between the central banks and the users. The states are concerned about the loss of sovereignty or the image of what may happen in the future if a cryptomonnaie were to be legalized on their territory. El Salvador is a good example of how this strategy might help secure the country by causing a significant drop in the value of the dollar. This may be the case if a financial crisis arrived at the end of one's nose.
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