Honduras has broken ground on “Bitcoin Valley,” a project in the country’s booming city of Santa Lucia, in an effort to attract crypto investors from around the world.
Honduras is the latest Central American nation to promote a municipality’s use of cryptocurrency as a payment method. According to a report by Reuters, a number of Santa Lucian companies now accept Bitcoin as payment.
The “Bitcoin Valley” project aims for 60 firms to receive training and adopt cryptocurrencies to sell their products and services, with the expectation that this practice will spread to more businesses in the area. Santa Lucia is a short drive from Tegucigalpa, the capital of Honduras.
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Cesar Andino, manager of the Los Robles shopping center, said:
“It will create more chances and attract more individuals who want to use this currency.”
Not to be outdone, Honduras is building its own Bitcoin Hub
Honduras’ latest announcement comes about 10 months after neighboring El Salvador made Bitcoin legal tender. El Salvador also has millions of dollars worth of BTC in its coffers.
After the legalization of BTC as legal tender in El Salvador, tourism increased by around 30 percent. Nevertheless, given the recent decline in Bitcoin’s price, the nation faces certain obstacles.
“We have to globalise. We cannot block ourselves from technology and we cannot be left behind when other countries are already doing it,” Andino stated in a report translated by local newspaper Diario La Prensa.
According to Reuters, the crypto initiative was officially inaugurated on Thursday and was a collaboration between the Technological University of Honduras, Blockchain Honduras, the Guatemalan cryptocurrency exchange Coincaex and the municipality of Santa Lucia.
Bitcoin as legal tender
Central American nations have been evaluating crypto efforts to better assess their dangers and benefits. In April of this year, the Honduran economic zone recognized Bitcoin as legal cash and authorized crypto tax payments. Additionally, it has enabled entities to issue BTC bonds.
In addition to promoting merchant acceptance, the program intends to promote local Bitcoin and cryptocurrency education. Local students and business people have the opportunity to enroll in a month-long course on BTC and related technologies.
Professor Ruben Carbajal Velazquez of the Technological University stated:
The community of Saint Lucia will be educated on how to use and handle cryptocurrency, use them in regional companies and develop crypto-tourism.
Meanwhile, the International Monetary Fund has sounded the alarm that El Salvador and the Central African Republic have adopted bitcoin as official tender. Furthermore, it has been argued that DeFi poses a threat to financial markets and requires regulation.
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