Bitcoin may soon become legal tender in Honduras, according to unconfirmed reports. Xiomara Castro, the President of Honduras, may make the announcement within hours. El Salvador’s President, Xiomara Castro, is quoted as saying that the country should not be the only one “escaping dollar hegemony.”
Bitcoin may soon become legal tender in Honduras
As reported by the sources, Castro also stressed Honduras’ right to “advance towards the First World,” however the information was unsubstantiated at the time of publication. On March 21, Honduran President Manuel Zelaya is expected to make the announcement.
The lempira is Honduras’ “fiat” currency, which is equivalent to 100 cents. A battle against Spanish colonists in 1536 resulted in the death of the Indian chief Lempira, who was named after the currency.
Honduras’ economy is surprisingly strong and stable for such a tiny country, despite the humorless opinions of some individuals. Bananas, coffee, and African palms are the main crops. Agriculture is the most important economic sector, followed by mining and tobacco production. Honduras has the eighth-largest economy in Latin America in terms of nominal GDP and eighth-largest in terms of purchasing power parity (PPP).
The introduction of Bitcoin as a legal tender in Honduras might significantly increase interest in both economic investment and tourism in the country.
The Central American country is following a trend of high cryptocurrency interest. Honduras has previously installed its first Bitcoin and Ethereum ATM in the capital Tegucigalpa, allowing consumers to buy the digital assets using the local currency lempira, according to Finbold in August 2021. According to community polls on CoinMarketCap, Honduras, which borders El Salvador, is just the 40th country expected to allow cryptocurrencies to be used as legal cash.
On March 18, noted crypto enthusiast Max Keiser, who had been spending time in and around the region, tweeted the Honduran flag, implying that something could be happening soon:
It’s happening… pic.twitter.com/9RvtblXfoK
— MAX??? (@maxkeiser) March 18, 2022
Based on the growing interest in crypto among American lawmakers, this prediction may not be far off. Senators are developing crypto-friendly legislation, and Senate candidates are promising to fight for the introduction of Bitcoin as legal tender.
The government of El Salvador was the first in the world to adopt Bitcoin as legal currency, doing so in the fall of 2021, despite data suggesting a general lack of faith in the digital currency among its citizens.
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Also read: Malaysia proposes to adopt cryptocurrency as legal tender
