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Honduras is launching Bitcoin Valley and plans to introduce crypto payments

Honduras is launching Bitcoin Valley and plans to introduce crypto payments

created Simon petersAugust 1 2022

Cryptocurrency markets saw another strong week of gains last week as major cryptocurrencies such as Bitcoin i Ethereum they kept going up.

While the path to recovering the losses from the first half of the year remains long, cryptocurrencies like Bitcoin are witnessing a micro-resurgence. Bitcoin last week hit $ 24 on the eToro platform after starting the week below $ 000. The BTC price is currently around $ 20. Ethereum started the week similarly, below $ 000, but over the weekend it surged above $ 23 and is now hovering around $ 000.

In terms of activity, we can see that the synchronization with the stock markets continues. In July, there was a sharp return to stocks, especially technology and higher-risk stocks. Most of the effects of inflation and interest rate increases appear to be priced in and markets are skeptical of fears of a recession.

Institutions treated cryptocurrency shares in the same way as stocks, which is why this correlation is greater than before. As large institutions turn to crypto again, cryptocurrency investors can watch valuations return to better levels.

The UK Legal Commission rules on cryptocurrencies

The UK Legal Commission has published a consultation paper on cryptocurrencies. The document contains proposed reforms in the treatment of cryptocurrencies and other safe digital assets such as NFT. Despite the lack of official regulations, it is clear that UK law is moving towards regulating financial digital products.

In many ways, property rights are one of the foundations of well-functioning markets. This is one of the reasons the UK is such an attractive area for many people looking for asset management or other investment services. Solid ownership of assets and the knowledge that the courts in your chosen jurisdiction will uphold those rights are critical to the functioning of investment markets.

Therefore, the results of these consultations are extremely important for the UK cryptocurrency scene. Cryptocurrencies and, more broadly, digital assets exist in the UK today in a sort of shadow economy. However, if implemented, these proposed reforms would significantly strengthen digital property rights, and most importantly, the right of owners to judicial recovery if necessary.

Aave DAO approves the GHO stablecoin

Projects cryptocurrency Aavewhose token is available on the eToro platform, approved the creation of a new one stablecoina through its so-called a decentralized autonomous organization (DAO). Stablecoin will be backed by the security of the cryptocurrency basket and has been approved overwhelmingly by the community.

Stablecoins create a really important function in the cryptocurrency sector. They allow token users to seamlessly and securely enter the ecosphere and play an important role in cryptocurrency liquidity management. Having different stablecoins that are interoperable with fiat and other tokens is really important.

Aave's GHOs will take a while to boot up, but it's a positive sign that new stablecoins are hitting the market. Cryptocurrencies have had something like a tough couple of months, with some high-profile failures, so it's important for investors to do project due diligence to understand case studies and build a risk profile.

Honduras launches Bitcoin Valley

Without being overtaken by its neighbor El Salvador, Honduras has launched "Bitcoin Valley" in a city located 20 minutes from the capital Tegucigalpa. The Central American nation wants to promote the use of Bitcoin by enrolling 60 companies for training to adopt cryptocurrency for their products and services.

While this is something of an advertising gimmick as has become clear recently, developing countries such as El Salvador and Honduras see significant potential in the use of cryptocurrencies, especially when local currencies are inherently volatile.

Bitcoin maximalists or see BTC as the future global currency. One of the biggest obstacles to this is the formal introduction of the currency into circulation. Many believe that the real driving force is adoption in developing countries, where fiat currencies are not a good place to store capital. Time will tell, but - as this project suggests - the adoption is already underway.

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About the Author
Simon peters
eToro analyst. A graduate of the Faculty of Mechanical Engineering at Brunel University in London. He is CFA UK Level 4 certified in Investment Management.