Honduras launches ‘Bitcoin Valley’ in tourist town of Santa Lucia

July 29 (Reuters) – People can pay for a slushie with crypto on the streets of “Bitcoin Valley,” a project in the Honduran tourist enclave of Santa Lucia where the country has embraced the digital currency trend.

The small town in the mountains, 20 minutes from the capital Tegucigalpa, has become a bitcoin town.

Business owners large and small in Santa Lucia are adapting to handle cryptocurrencies as payment, hoping to attract more tourism.

“It will open 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 is targeting 60 businesses that will initially be trained and adopt cryptocurrencies to market their products and services, and expects to spread this practice to more businesses and nearby areas.

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

Ruben Carbajal Velazquez, professor at the Technological University, said “Santa Lucia’s community will be educated to use and manage cryptocurrencies, implement them in different businesses in the region and generate crypto-tourism.”

While some Latin American countries are exploring the potential of cryptocurrencies, there are risks.

In September 2021, El Salvador adopted bitcoin as legal tender with its own “Bitcoin Beach” in the surfing hotspot town of El Zonte. read more

The Central American country’s venture into bitcoin was hampered by the slowdown in the crypto market and skepticism from multilateral lenders and rating agencies. Its publicly disclosed holdings of $105 million are now worth about $57 million.

To manage volatility, Honduras’ “Bitcoin Valley” will “enable merchants to receive instant payments in the local currency, eliminating fluctuation risk for cryptocurrencies,” said Leonardo Paguada, founder of the Block Chain Honduras organization.

Critics of bitcoin’s expansion have warned that these types of operations could fuel money laundering and financial instability while widening the digital divide, as poorer sections of society may struggle to access the technology.

Reporting by Rodolfo Penaroja and Aida Pelaez-Fernandez; Editing by David Gregorio

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