Honduras launches crypto town 'Bitcoin Valley'

Honduras just launched a crypto town called “Bitcoin Valley” in the tourist city of Santa Lucia, as the country pushes forward with the use of digital currency.

Santa Lucia, a small town in the mountains about 20 minutes from the Honduran capital of Tegucigalpa, has become the latest crypto-powered city.

In the hopes of attracting tourism, the town residents and business owners are switching over to digital currencies as a form of payment.

“We are trying to reach people in Honduras already familiar with cryptocurrencies, but also to attract visitors who want to visit the municipality,” said Leonardo Paguara, president of Blockchain Honduras, one of the leading partners in the project.

"It will open more opportunities and attract more people who want to use this currency," said Cesar Andino, manager of Los Robles shopping square.

The project will start with at least 60 businesses, which will get trained in cryptocurrencies to ensure a smooth adaptation to the market. Ideally, other businesses will catch on and the practice will spread to nearby areas.

"Santa Lucia's community will be educated to use and manage cryptocurrencies, implementing them in different businesses in the region and generating crypto-tourism," said Ruben Carbajal Velazquez, professor at the Technological University of Honduras.

Bitcoin Valley is an initiative that is jointly developed by the Blockchain Honduras organization, the Guatemalan cryptocurrency exchange consortium Coincaex, the Technological University of Honduras, and the municipality of Santa Lucia, according to Reuters.

Honduras is following in the footsteps of neighboring El Salvador, which was the first country ever to adopt bitcoin as legal tender in 2021.

El Salvador also has several crypto-related projects, including the surfing town of Bitcoin Beach, the geothermal-powered  Bitcoin City on the slope of a volcano, and its bitcoin bonds.