The Central Bank of Honduras has warned its citizens about cryptocurrencies' exceptionally high price volatility as well as its scarcity in backing of any sort. While some countries such as the U.S. are drafting legislation to impose stricter oversight of cryptos like bitcoin (BTC-USD) and ethereum (ETH-USD), Honduras has not yet taken legal action to support the use of them. "Crypto assets do not have backing, so they are not regulated nor is their use guaranteed, therefore, they do not enjoy the protection granted by national laws," the CBH said in a statement translated by Seeking Alpha dated July 29. The central bank added that cryptos can lose their value within a short period of time. Bitcoin (BTC-USD), for example, has lost over 60% of its market value since its peak in November 2021. The world's largest digital token by market cap is changing hands at $23.45K as of around 11:00 a.m. ET, down from its all-time high of $68.9K less than a year ago. As such, "since crypto assets are not supported by the laws of the country, any transaction carried out with them will be under the responsibility and risk of the person who carries it out," according to the statement. Towards the end of July, U.S. senators introduced a bill that would end taxes on small crypto transactions.
