Honduran President Xiomara Castro is expected to declare Bitcoin legal tender in the country on March 21.
If this were to occur, then Honduras would become the second sovereign country after El Salvador to adopt the cryptocurrency.
This could lead to an increase in the value of the cryptocurrency token.
Bitcoin (BTC) is the largest cryptocurrency in terms of market capitalization, and this has, as such, allowed it to be the main point of discussion when it comes to making cryptocurrencies legal tender.
The latest nation to truly start considering, and which might even announce the legalization of Bitcoin (BTC) as legal tender, is Honduras, and we are going to go over the event as well as how this could contribute to the growth in value of the BTC cryptocurrency token.
Bitcoin’s legalization in Honduras as a catalyst for growth
On March 21, it is expected for the Honduran President, Xiomara Castro, to declare Bitcoin (BTC) legal tender within the country.
If this were to happen, this would make Honduras the second sovereign country after El Salvador to adopt a digital currency as an official legal tender.
According to President Castro: “We must not allow El Salvador to be the only country escaping dollar hegemony. Honduras has the right to move towards the First World countries.”
However, for the time being, the nation’s FIAT currency is the Lempira, which is equal to 100 centavos.
The currency was named in honor of the Indian leader Lempira, who was killed in a fight against the Spanish colonists in 1536.
Honduras's economy has been independent and stable. It is based on the production of coffee, bananas, and even the African palm. In any case, this development could contribute to the growth of the Bitcoin (BTC) cryptocurrency token.
Should you buy Bitcoin (BTC)?
On March 21, Bitcoin (BTC) had a value of $41,397.31.
To get a better perspective as to what kind of value point this is for the BTC cryptocurrency token, we will be going over its all-time high point of value as well as its performance throughout the previous month.
In terms of the all-time high point of value of the BTC token, BTC was worth $69,044.77 on November 10, 2021. Here, we can see that the token was $27,647.46 higher in value at its ATH.
When we go over the performance of the token throughout the previous month, on February 2, BTC had its highest point of value at $45,387.26.
Its lowest point was on February 24, when the token decreased in value to $34,750.15.
This means that the token decreased in value by $10,637.11 or by 23%.
However, from February 24 to March 21, the token increased in value by $6,647.16.
With this in mind, after the official announcement, we can expect BTC to reach a value of $42,000 by the end of March 2022.