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

The Central Bank of Honduras, or BCH, has addressed speculations that the country, like neighboring El Salvador, would adopt Bitcoin as legal tender.

Honduras' Central Bank clarified on Wednesday that they would not be making Bitcoin their legal tender. They also further clarified that cryptocurrencies were not regulated in the country and would not recognise as legal tender for transactions. 

Furthermore, the country's central bank has reaffirmed its jurisdiction under Honduras' constitution as the country's sole authorised “issuer of banknotes and coins” which would be deemed legal currency in the nation.

“BCH does not supervise or guarantee operations carried out with cryptocurrencies as means of payment,” it in a statement. “Any transaction carried out with these types of virtual assets is the responsibility and risk of those who do it,” it further explained.

Despite not being open to accepting Bitcoin as legal tender, for the time being, the Central Bank of Honduras did announce that they were continuing to investigate the viability of launching a central bank digital currency, or CBDC. Moreover, the Central Bank announced that the CBDC would be treated as legal tender in the country and would be regulated appropriately.

It is worth noting that the Central Bank of Honduras had to come out with this statement because, in the past few days, multiple news outlets claimed that Honduran President Xiomara Castro was considering accepting Bitcoin as legal tender. 

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