- Central bank of Honduras refuses to back up cryptocurrency transactions.
- The first crypto ATM was installed in Honduras in August of last year.
Honduran authorities say that Bitcoin and other cryptocurrencies are now legal money in a special economic zone on a Caribbean island. In order to stimulate investment, a tourist-oriented island called “Honduras Prospera” was built in 2020. It has full control over all aspects of its operations, including administrative, fiscal, and budgetary matters.
In a statement, authorities stated:
“Prospera’s flexible regulatory framework enables crypto-innovation and the use of Bitcoin by residents, businesses, and governments.”
Reuters reports that the economic zone will enable local governments and multinational corporations to issue bitcoin bonds under the authority of the zone. Roatan Island and the city of La Ceiba, on Honduras’ Atlantic Coast, are included in Honduras Prospera.
Since September of last year, the neighboring nation of El Salvador has made the cryptocurrency bitcoin legal money. Despite its rocky start and widespread skepticism, El Salvador became the first nation to implement the system. Binance CEO Changpeng Zhao tweeted regarding the recent development.
Honduran special economic zone adopts #bitcoin as legal tender.
— CZ 🔶 Binance (@cz_binance) April 8, 2022
Individuals Liability
Despite this, the central bank of Honduras refuses to back up cryptocurrency transactions. According to the bank, every transaction carried out with this form of a virtual asset comes within the accountability and liability of the individual carrying it out. The first crypto ATM was installed in Honduras in August of last year. The country’s capital, Tegucigalpa, now has the country’s first Bitcoin ATM, installed by TGU Consulting Group, a Honduran company.
Honduras’ native currency, the “Honduran lempira,” may be used to purchase Bitcoin and Ethereum from the “la bitcoinera,” a crypto ATM. To use an ATM to purchase bitcoins, customers will need to scan formal identification and provide personal data such as phone numbers.
