Central Bank of Honduras denies rumours of accepting Bitcoin as legal tender

BCH (Central Bank of Honduras) has responded to speculations that the country would adopt Bitcoin as legal currency, just like El Salvador.

The Central Bank of Honduras clarified Wednesday that Bitcoin would not be made their legal tender. The Central Bank also clarified that cryptocurrencies are not regulated in Honduras and they would not recognize them as legal tender for transactions.

The central bank of the country has also affirmed its authority under the constitution of Honduras as the only authorized ‘issuers banknotes or coins’ that would be considered legal currency.

It stated that the BCH doesn’t supervise or guarantee transactions using cryptocurrencies for payment. It further stated that transactions using these virtual assets are the responsibility and risk for those involved.

Although they are not open to Bitcoin being accepted as legal tender, the Central Bank of Honduras announced that they were still investigating the possibility of launching a central bank’s digital currency (or CBDC). The Central Bank also announced that the CBDC will be considered legal tender in the country, and would be appropriately regulated.

It is important to note that the Central Bank of Honduras was forced to issue this statement due to multiple news outlets reporting that Honduran President Xiomara Cruz was looking into accepting Bitcoin as legal currency.