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

Bitcoin.com

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.”

Central Bank of Honduras Clarifies Stance On Cryptocurrency

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.

How To Get Free Crypto  

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.

Rising Popularity

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.

Coinbase Banner  
Tags in this story

What do you think about the stance of the Central Bank of Honduras on cryptocurrency? Tell us in the comments section below.

Sergio Goschenko

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.

Read disclaimer

Go to Source
Author: Sergio Goschenko


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.