Honduras has broken ground for “Bitcoin Valley,” a project in the country’s booming town of Saint Lucia that aims to attract crypto investors from around the globe. Honduras is a Central American country promoting the use of cryptocurrencies as a payment method by municipalities. According to reports, many companies in the town of St. Lucia now accept Bitcoin as a payment method.
The “Bitcoin Valley” project aims to train 60 companies to adopt cryptocurrency to sell their products and services, with the expectation that these practices will be rolled out to more businesses in the region. Saint Lucia is a short drive from Tegucigalpa, the capital of Honduras.
Los Robles mall manager Cesar Andino noted that it will create more opportunities and attract more people who want to use the currency.
Honduras’ latest announcement comes about 10 months after its neighbor El Salvador fiatized bitcoin. El Salvador also has millions of dollars worth of bitcoin in its treasury. With BTC legalized as legal tender in El Salvador, tourism has grown by around 30%. Still, the country faces certain hurdles given the recent drop in bitcoin prices.
Given the growth of tourism in El Salvador, Honduras’ choice doesn’t seem too difficult to understand. Andino pointed out that we must globalize. We cannot isolate ourselves from technology, nor can we fall behind when other countries are already doing so.
Central American countries have been making efforts to evaluate cryptocurrencies to better assess their harms and advantages. In April, the Honduras Economic Zone recognized bitcoin as legal cash and authorized the payment of crypto taxes. Additionally, it enables entities to issue BTC bonds.
In addition to promoting merchant acceptance, the program intends to promote local bitcoin and cryptocurrency education. Local students and businessmen have the opportunity to take a month-long course on BTC and related technologies. Professor Ruben Carbajal Velazquez of the University of Science and Technology said that the Saint Lucian community will receive training on how to use and handle cryptocurrencies, apply them to regional companies and develop crypto tourism.
However, the International Monetary Fund has warned El Salvador and the Central African Republic to adopt bitcoin as official tenders. Additionally, there are claims that DeFi poses a threat to financial markets and requires regulation.
Against this backdrop, and in the wake of the recent Bitcoin bear market, the Central Bank of Honduras issued a press release aimed at clarifying the agency’s stance on the use of cryptocurrencies in the country.
Even if such tools gain popularity in other countries, cryptocurrencies are not backed by any form and are also subject to high volatility, the group said. Any transaction with them will be at the responsibility and risk of the person executing the transaction.
In addition, the organization informed that under the country’s law, the only institution authorized to issue currency and guarantee the existence of an effective payment system is the Central Bank of Honduras.