Honduras Rumored to Legalize BTC Adoption

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Since last week, rumors began to circulate within the crypto community that Honduras was looking to become the second country to recognize BTC as legal tender. President Xiomara Castro had expressed a clear desire to free her country from the “dollar hegemony” in order to move Honduras “towards the First World countries.” This should come as no surprise for many, especially since neighboring El Salvador approved BTC as legal tender late last year.  

Many in the region have looked towards El Salvador’s example and initiated the process to do similarly. Along with Honduras, those introducing crypto-friendly laws and programs or looking to adopt BTC are Chile, Venezuela, Panama, Paraguay, Brazil, Uruguay, Colombia, Argentina, and most recently Mexico. To say that the journey for El Salvador has been smooth would be unrealistic, but the end goal to close the gap with developed economies is a primary motivation for countries seeking this type of policy.  

As quickly as it seems to be occurring, mass adoption may take some time to achieve in Latin America. Apprehension or outright suspicion is not uncommon among the people. BTC is, after all, a product of developed nations. In the past, economic policies or instruments handed down from America or the First World economies have worked out poorly for Latin American countries. 

Additionally, there’s the question of how to address financial literacy and access for mass adoption. For a digital currency to be accepted and traded on a large scale, it would first require internet access. According to the data from January 2021, internet penetration for Honduras was 38.2% compared to 50.5% in El Salvador. Moreover, around 73.8% of El Salvador's population resides in urban centers compared with the 58.7% in Honduras.    

There’s no question that any country, whether highly established or developing, will encounter a series of logistical obstacles in adopting BTC.  The social experiment occurring in El Salvador is being watched by many, and countries like Honduras are showing promise for aggressively progressive futures.  After having just elected their first female president, it is safe to assume that the people of Honduras want change.  In the end, it will likely start a domino effect for the remaining states in the region.