Central Bank of Honduras chooses CBDC instead of Bitcoin, breaks everyone’s heart

Many people bet that Honduras would be the next country to declare bitcoin legal tender. Apparently, they lost. From the country Central Bank issued official statement in which they affirm their authority as “sole issuer of banknotes and legal tender coins”. They also announce their intention to go down the CBDC route and issue their own digital currency. The exact opposite of bitcoin adoption.

It is worth noting that this is the official position of the Central Bank of Honduras, and not the government. The Executive Branch has not yet ruled on the matter. At the end of January, Xiomara Castro was sworn in and became the first female president of Honduras. Since her administration is now in power, people expected a change. Is the door still open for bitcoin to be legal tender in Honduras?

Let’s read some selected quotes from the text of the Central Bank. Contains some surprises.

What does the Central Bank of Honduras think about Bitcoin?

First, they define bitcoin and clarify that “at the moment it is not regulated in our country and in most countries it does not have the status of legal tender.” Notice the “at this time”. So, the organization defends its authority. “The BCH is the only issuer of banknotes and legal tender 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 Central Bank of Honduras is BCH.

Here it is where it gets interesting. The organization reiterates that “the BCH does not supervise or guarantee operations carried out with cryptocurrencies as a means of payment in the national territory. Any transaction that is carried out with this type of virtual assets is under the responsibility and risk of the person who carries it out.” So using bitcoin in Honduras is officially not illegal. Which is good to know.

Then it gets ugly. They had to break our hearts somehow. The Central Bank of Honduras “continues with the 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 counted. with the support of the BCH”. So, they want control. Total control.

BTCUSD Price Chart for 03/24/2022 - TradingView

BTC price chart for 03/24/2022 on FX | Source: BTC/USD on TradingView.com

What does the Twitterati think about a CBDC from Honduras?

A few weeks ago, 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 the speed of light in El Salvador, and more and more countries interested in adopting Bitcoin, I found that my time each day was no longer enough.” Samson Mow tweeted in his farewell thread.”

Since then, speculation about which country he is working with has been rampant. Playing into the situation, Mow’s Twitter became fuel for speculation. Several countries have emerged on his behalf, including Honduras. Adding fuel to the fire, Max Keizer, who said he knows which country will declare bitcoin legal tender He then tweeted the Honduran flag. “It’s happening…” she added.

Earlier in the week, Samson Mow predicted: “I don’t think Honduras is going to make a Bitcoin announcement this week. However, I would love to be wrong.” He was wrong. After the announcement of the Central Bank, mow tweeted “There is no Bitcoin legal tender in Honduras for now.”

For his part, Alex Gladstein, from the Human Rights Foundation, delved deeper. “Honduras seems to be bypassing Bitcoin and going the Central Bank digital currency route instead. Choosing monetary control over monetary freedom. This is the likely move for most governments, and underscores how exceptional BTC adoption really is in El Salvador.”

He underlines it. 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.

Keep your eye glued to Bitcoinist to be sure.

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

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