Honduras Launches Bitcoin Valley In The Tourist Town Of Santa Lucia

Honduras launches “Bitcoin Valley” in the tourist city of Santa Lucia. People can pay with crypto in the streets of “Bitcoin Valley,” a project in Honduras’ tourist enclave of Santa Lucia that launched the country into the digital currency trend.

The small town in the mountains 20 minutes from the capital city of Tegucigalpa has developed into a bitcoin town. Business owners big and small in Santa Lucia are adapting to work with cryptocurrencies as a means of payment in hopes of attracting more tourism.

“This will open up more opportunities and attract more people who want to use this currency,” said Cesar Andino, manager of the Los Robles mall.

The Bitcoin Valley project targets 60 companies to initially train and accept cryptocurrency to sell their products and services and hopes to expand this practice to more companies and nearby areas.

The initiative was jointly developed by the Honduran Blockchain organization, the consortium of Guatemalan cryptocurrency exchange Coincaex, the Technical University of Honduras and the municipality of Santa Lucia.

Ruben Carbajal Velazquez, a professor at the University of Technology, said that “the Santa Lucia community is being trained to use and manage cryptocurrencies, to implement them in various companies in the region and to generate crypto tourism”.

Although several Latin American countries are exploring the potential of cryptocurrencies, there are risks.

In September 2021, El Salvador accepted Bitcoin as legal tender with its own “Bitcoin Beach” in the surfing hotspot city of El Zonte.

The Central American nation’s bets on Bitcoin have been hampered by the crypto market slump and skepticism from multilateral lenders and rating agencies. His publicly disclosed holdings of $105 million are now worth an estimated $57 million.

To combat volatility, Honduras Bitcoin Valley will “enable merchants to accept instant payments in local currency, eliminating the risk of cryptocurrency fluctuations,” said Leonardo Paguada, founder of the Honduran Blockchain organization.

Critics of Bitcoin expansion have warned that this type of operation could fuel money laundering and financial instability while widening the digital divide, as poorer sections of society may struggle to access the technology.