Why Central Bank of Honduras is warning about the danger of crypto use?
Crypto websites cover all that is relevant in the crypto space. One can follow the cryptocurrency ICO news to get the latest updates on new ICO listings. Cryptoknowmics is one such website where you can stay abreast with crypto ICO news. No matter whether cryptocurrency has been popular as a new decentralized peer-to-peer monetary technology, still, it has always been under suspicion and doubt by banks and countries. And Central Bank of Honduras is one such example.
Recently, the institution published a release to clear about its stance on the use of cryptocurrencies in the country. The organization stated about no backing of cryptocurrencies and is also prone to high volatility. A person is solely responsible for any transaction he does in cryptocurrency and the risk it carries with it. Let us discuss it further.
Stance on cryptocurrency by Central Bank of Honduras
While there are countries that have come in support of cryptocurrencies by incorporating them into their economic structure, there are other countries that are still adamant in opposing crypto. The traditional financial institutions in these countries are still not convinced about crypto acceptance.
Recently, the Central Bank of Honduras clarified its stance on cryptocurrency usage on Honduran soil. The organization stated in its report that the authority of issuing money and guaranteeing the presence of a structured payment system lies only with it.
Cryptocurrencies still do not lie in the legal matter in Honduras, plus, their existence has yet not been acknowledged. Because of this, the citizens of Honduras have been warned by the bank regarding the statement that says, crypto-assets do not come with support, so in that case, they cannot be regulated and no guarantee of their utility is possible. Hence, no protection can be granted to them by national laws.
Another major issue with cryptocurrency mentioned by the Central Bank of Honduras is market volatility. The price of crypto uncertainly changes at any hour. Also, their value is often lost unexpectedly. And we are witnessing it since the last year when many have lost 60% in the market. It has also criticized the use of cryptocurrency as a new method of payment.
Those who perform it are solely responsible for any risk they encounter when doing transactions in cryptocurrencies. The reaction from the Honduran Bank came after the rising graph of cryptocurrency use in the Central American country, Honduras. There is a crypto-supportive company name Prospera, which is known to have encouraged the acceptance of Bitcoin legally. Because of this, citizens are allowed to do tax payments in the latter crypto. In that way, they need not have to pay capital gains tax on their utility. But still, Bitcoin is yet to get complete legal acceptance from the country.
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News about Bitcoin as legal tender in Honduras
In March, there have been rumors about the legal adoption of Bitcoin by the president of Honduras, Xiomara Castro. It all got spread through social media outlets. But very soon all these rumors were put to end by the Central Bank of Honduras, indicating them to be baseless and false.
Countries where Bitcoin is still not accepted as legal tender
If you are curious about buying Bitcoin, then hold on. Before taking any random step, it is advisable to reconsider your decision. No, we are not discouraging you to not buying BTC, but want you to confirm whether it can be used legally in your country or not. We put this question because there are countries other than Honduras, where no legal stance has been taken on Bitcoin. Or in other words, it is not accepted or is banned.
There are countries with specific crypto regulations. While some accept BTC for purposes like trading, tax payment, and buying goods, some countries can put you behind bars merely for possessing Bitcoin. These countries practice strict no in any form of crypto dealings. Below are some of the countries where cryptocurrencies are banned. These are:
- The Republic of Macedonia
- Dominican Republic
- The Republic of Macedonia
These are those countries where cryptocurrency is not welcomed legally and is looked at with suspicion of carrying illegal practices such as money laundering. The unregulated nature is also one of the big reasons.
It is not the only case in these countries where cryptocurrencies are banned or cannot be accepted as legal tender due to their unregulated nature and suspicion of carrying out an illegal practice like money laundering. So whenever you plan to invest in Bitcoin be very sure that the country you are living in allows it legally. Or else, you might end up in some unpleasant experience.
Cryptocurrency no doubt has become popular in the world, but still, it has not got complete acceptance from many countries (including the listed ones). But there are some positive examples like El Salvador, Canada, the United States, The European Union, Australia, Japan, Denmark, Iceland, Spain, France, and Mexico.
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