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Honduras Central Bank Chooses CBDCs Over Bitcoin
A lot of people had their bets on Honduras being the next country to declare bitcoin legal tender.
Anuj J.
11:18 24th Mar, 2022
Policy1

A lot of people had their bets on Honduras being the next country to declare bitcoin legal tender.

Apparently, they lost. The country’s Central Bank issued an official statement in which they affirm their authority as the “sole issuer of legal tender banknotes and coins.” They also announce their intention of going the CBDC route and issuing their own digital currency. The exact opposite of bitcoin adoption.

It’s worth noting this is the Honduras Central Bank’s official position, and not the government’s. The Executive Power is yet to issue an opinion on the subject. In late January, Xiomara Castro took the oath and became the first Honduras President to be a woman. Since her administration is now in power, people expected change. Is the door still open for bitcoin as legal tender in Honduras?

This is where it gets interesting. The organization 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, using bitcoin in Honduras is officially not against the law. Which is good to know.

A few weeks back, Samson Mow quit his job as Chief Strategy Officer at Blockstream to focus 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, speculation about which country is he working with has been rampant. Playing with the situation, Mow’s Twitter became speculation fuel. Several countries have come up in his posts, including Honduras. Adding fuel to the fire, Max Keiser, who said he knows which country will declare bitcoin legal tender next, tweeted Hondura’s flag. “It’s happening…” he added.

Earlier in 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 wrong. After the Central Bank’s announcement, Mow tweeted “No Bitcoin legal tender in Honduras for now.”

For his part, 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 country is on the horizon and everyone can feel it. Will they announce it at the Bitcoin 2022 conference? Is this a decoy? Will Honduras surprise the world and make the announcement? It may very well be.

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