More Cryptocurrency Adoption in Central America

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Within the last several days, there has been quite a bit of speculation regarding whether or not the country of Honduras will be officially adopting Bitcoin as legal tender. The central bank has just made an announcement stating that Honduras will not be adopting Bitcoin at this time, however it will remain unregulated. Even so, Central America has been taking the lead on cryptocurrency adoption amongst the global stage.

Honduras and Bitcoin

Only one year ago in 2021, Honduras got it’s first Bitcoin ATMs, allowing people to buy the cryptocurrency in exchange for the Honduran Lempira (HNL). That was when the country’s cryptocurrency frenzy really began. Honduras borders El Salvador, therefore witnessed the positive effects of Bitcoin adoption as legal tender firsthand. Although Honduras will not be adopting Bitcoin as legal tender at this time, the country’s central bank will be exploring CBDC options.


Central America and Crypto

Ever since El Salvador recognized Bitcoin as legal tender last June, the amount of cryptocurrency adoption that has taken place in Central America has outpaced the entire rest of the world. Paraguay for example has recently proposed a Bitcoin bill, which aims to create a legally defined “blockchain industry.” The goal of the Paraguayan government is to convince more crypto companies to move their operations to Paraguay with initiatives such as a mere 10% tax rate for businesses involved with cryptocurrency. Cryptocurrency miners can also take advantage of Paraguay’s 100% green and incredibly cheap energy. Depending on how well these initiatives work out, members of congress in Paraguay are even considering passing another bill which would recognize Bitcoin as legal tender.



Panama is also in the process of passing a bill which is similar in nature to the cryptocurrency bills which are currently being worked on in Paraguay. This bill would also recognize Bitcoin as legal tender in Panama, which would likely increase the amount of private crypto adoption in Panama to astronomical levels, as Panama is already a known tax haven. It is unfortunately possible that the bill may be vetoed by the president even if it passes through congress, as it is being proposed by the opposition party.


Conclusion

There is still a long way to go when it comes to cryptocurrency adoption at the government level, which means big steps such as these will be what paves the way to crypto’s prosperous future! it’s been theorized since cryptocurrency first appeared that once one country adopted cryptocurrency as a legal tender, other countries in the same region will likely the example. This is exactly what we’re seeing take place in Central America, and this is undoubtably one of the greatest milestones that Bitcoin and cryptocurrency as a whole is in the process of achieving!


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