Honduras seems set to follow in the footsteps of El Salvador, allowing its residents to make payments in cryptocurrencies.
Honduras recently launched a program called “Bitcoin Valley”, under which it will teach around 60 businesses in Santa Lucia about how to adopt cryptocurrencies.
The program is jointly developed by the Blockchain Honduras organization, the Guatemalan cryptocurrency exchange consortium Coincaex, the Technological University of Honduras and Santa Lucia’s municipality, reported Reuters.
As part of the program, the government is also educating local residents on how to use and manage cryptocurrencies.
Lanzamiento Bitcoin Valley@Blockchain504 @coincaex @UTHEDU pic.twitter.com/36cTLeB2ao
— Blockchain Honduras (@Blockchain504) July 28, 2022
Plagued by decades of gang violence and economic hardship, Honduras is hoping to turn Santa Lucia into a hub for global crypto investors.
The project will not only draw investments, but will also attract tourists, Honduran officials told Reuters.
The news comes 10 months after El Salvador adopted Bitcoin as legal tender in addition to calling its tourist town El Zonte a “Bitcoin Beach”.
Thanks to bitcoin, tourism has increased by around 30% in El Salvador in the past few months.
El Salvador’s bet on bitcoin hasn’t paid as expected, though. The value of bitcoing has fallen more than 50% in the past few months on the back of rising interest rates in the United States.
However, Honduras appears to have a lot of faith in the cryptocurrency. In April this year, the government allowed companies operating in its economic zones to make payments in bitcoin. Furthermore, it permitted companies to issue BTC bonds.
Global financial organizations, such as International Monetary Fund (IMF), have warned against cryptocurrencies, saying they fuel money laundering and widen the digital gap.