Popularity Of Cryptocurrencies Rises, Central Bank Of Honduras Warns Dangers Of Cryptocurrencies

JAKARTA – The popularity of cryptocurrencies has not subsided despite a decline in recent months. Even a number of countries have drafted regulations to regulate cryptocurrencies as part of their economy.

On the other hand, some central banks oppose the use of cryptocurrencies such as the Honduras central bank. Whereas recently the Honduran government created Bitcoin Valley to attract tourism and as a new economic alternative.

The central bank of Honduras issued a statement regarding the use of cryptocurrencies in the country. The central bank of Honduras insists that according to national law, the only institution authorized to issue money and to ensure an efficient payment system is the Central Bank of Honduras.

In Honduras, cryptocurrency itself is still a gray area in state law. Hence the central bank asserts its legitimacy and warns Hondurans to avoid cryptocurrencies.

“Crypto assets have no backing, so they (cryptocurrencies) are not regulated and their use is not guaranteed, therefore, they do not enjoy the protection afforded by national law,” the Honduras Central Bank said, quoted from Bitcoin.com News.

The financial institution therefore warned that the digital asset could lose value suddenly. In addition, the bank also criticized the use of cryptocurrencies as a means of payment.

"Any transaction made with them will be the responsibility and risk of the person doing it," the Honduras Central Bank added.

The statement from the Honduran financial institution responds to the increasing popularity of using cryptocurrencies in the country. Coupled with the Honduran economic zone, Prospera, which decided to adopt Bitcoin as a legal medium of exchange. With this policy, Honduran citizens can pay taxes using Bitcoin. The government also exempts its citizens from income tax from crypto.