Recently, the banking entities in Honduras announced their intention to join the cryptocurrency market. Following multiple sources, they will be joining the initiative at the Central Bank Digital Currency (CBDC).
The decision to enter the crypto market is influenced by the successful transition by the El Salvador government.
Honduras Eyes the Crypto Market
Although influenced by the Salvadoran government; Honduras plans to join the market by creating a stable coin and not adopting Bitcoin.
El Salvador directly adopted Bitcoin and made it the countries legal tender. Now organizations and individuals can buy and sell in the cryptocurrency market.
The digital currency the Honduras market are looking to create will go by the name Quetzal.
The Salvadoran government used an execution plan referred to as the Bitcoin plan to join the Crypto market. According to the president of the central bank, they had to buy 400BTC to complete the execution plan.
The large purchase was necessary to increase their value on the market. With the purchase bills included, BTC totalled $52000 but then went over $45000.
The government announced that interested investors could purchase Bitcoin worth $30, which was exciting news for cryptocurrency fans. However, this was not good news to everybody because some citizens have been protesting since the introduction of Bitcoin.
Even after witnessing the problems and protests that come with passing the Bitcoin bill in El Salvador, the Honduran government is ready to take the risk and create a stable coin and join the cryptocurrency market.
However, Honduran has not yet announced the launch date; And if the stable coin price will link to the dollar or local currency.
Speaking at a regional economic forum, the president of the central bank of Honduras stated that they have appointed and approved a board of directors to carry out a feasibility study on whether to use central bank digital currency or its own digital money.
The study might take some time, but the end goal is to introduce cryptocurrency into the Honduras economy.
Plans to Enter the Crypto Market as Several Latin Countries Warm Up to Transacting With Cryptocurrencies
Several Central American and Latin American countries have shown an interest in trading using cryptocurrencies.
Although some have not released official statements yet, Honduras has already declared its intentions officially, and El Salvador is already trading using Bitcoin.
Countries below Central America like Brazil, Argentina, and Columbia are planning to develop projects that will help them make money from their crypto market.
On the other hand, the Latin countries hold onto creating a stable coin based on their cryptocurrencies. For the success of the new currency adoptions, the governments should consider taking up a decentralized cryptocurrency just like the El Salvador government.
To mark the start of cryptocurrency trading in Honduras, they installed the first cryptocurrency ATM on August 27, 2021. Interested investors are allowed to purchase Bitcoin and Ether from the ATM using the local currency.