Honduras Central Bank Chooses CBDCs Over Bitcoin, Breaks Everyone’s Hearts

    Lots of people had their bets on Honduras being the following nation to declare bitcoin authorized tender. Apparently, they misplaced. The nation’s Central Bank issued an official statement during which they affirm their authority because the “sole issuer of legal tender banknotes and coins.” They additionally announce their intention of going the CBDC route and issuing their very own digital forex. The actual reverse of bitcoin adoption.

    It’s value noting that is the Honduras Central Bank’s official place, and never the federal government’s. The Executive Power is but to situation an opinion on the topic. In late January, Xiomara Castro took the oath and have become the primary Honduras President to be a girl. Since her administration is now in energy, folks anticipated change. Is the door nonetheless open for bitcoin as authorized tender in Honduras? 

    Let’s learn some selection quotes from the Central Bank’s textual content. It incorporates a couple of surprises.

    What Does The Honduras Central Bank Think About Bitcoin?

    First, they outline bitcoin and make clear that “at the moment is not regulated in our country and in most countries doesn’t  have the condition of legal tender.” Notice the “at the moment.” Then, the group defends its authority. “The BCH is the sole issuer of legal tender banknotes and coins in the national territory. Likewise, Article 1 of the Monetary Law indicates that the monetary unit of Honduras is the Lempira.”

    Yes, the acronym for the Banco Central de Honduras is BCH. 

    This is the place it will get fascinating. The group reiterates that “the BCH does not supervise or guarantee operations carried out with cryptocurrencies as means of payment in the national territory. Any transaction carried out with this type of virtual assets is under the responsibility and risk of those who do it.” So, utilizing bitcoin in Honduras is formally not towards the legislation. Which is sweet to know.

    Then, it will get ugly. They needed to break our hearts one way or the other. The Honduras Central Bank “continues with conceptual, technical, and legal study and analysis to determine the feasibility of issuing a central bank digital currency (CBDC) that will be recognized as legal tender in the country and therefore be regulated and have the support of the BCH.” So, they need management. Total management.

    BTCUSD price chart for 03/24/2022 - TradingView

    BTC value chart for 03/24/2022 on FX | Source: BTC/USD on

    What Does The Twitterati Think About An Honduras CBDC?

    A number of weeks again, Samson Mow quit his job as Chief Strategy Officer at Blockstream to concentrate on nationwide bitcoin adoption. At the time, Bitcoinist reported:

    “Apparently, the bitcoin nation-state adoption business was too good to pass. “With everything happening at light speed in El Salvador, and more and more countries interested in adopting Bitcoin, I found my time each day just no longer enough anymore,” Samson Mow tweeted in his goodbye thread.” 

    Since then, hypothesis about which nation is he working with has been rampant. Playing with the scenario, Mow’s Twitter grew to become hypothesis gas. Several nations have come up in his posts, together with Honduras. Adding gas to the hearth, Max Keiser, who mentioned he knows which country will declare bitcoin legal tender subsequent, tweeted Hondura’s flag. “It’s happening…” he added.

    Earlier within the week, Samson Mow predicted, “I don’t think Honduras is going to make a Bitcoin announcement this week. I’d love to be wrong though.” He was fallacious. After the Central Bank’s announcement, Mow tweeted “No Bitcoin legal tender in Honduras for now.”

    For his half, the Human Rights Foundation’s Alex Gladstein went deeper. “Honduras appears to be taking a pass on Bitcoin, and is instead going the Central Bank Digital Currency route. Choosing monetary control over monetary freedom. This is the likely move for most governments, and underscores how exceptional BTC adoption in El Salvador really is.”

    It does underscore that. However, a second nation is on the horizon and everybody can really feel it. Will they announce it on the Bitcoin 2022 convention? Is this a decoy? Will Honduras shock the world and make the announcement? It might very nicely be.

    Keep your eye glued to Bitcoinist to search out out for certain.

    Featured Image by Héctor Emilio Gonzalez on Unsplash  | Charts by TradingView

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