Honduras is currently in the research phase.

CBDC History and Development

In 2022, Central Bank of Honduras president Wilfredo Cerrato said, “The Central Bank of Honduras has also recently begun, approved by the board of directors, to initiate the study... to determine the feasibility of conducting a pilot test issuing its own digital money or a central bank digital currency.” Therefore, it’s likely Honduras may soon enter the pilot phase. The Central Bank of Honduras has also requested technical assistance from the International Monetary Fund.

Human Rights and Civil Liberties Concerns

Honduras earned a 48 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, oppression and corruption are major issues in Honduras. The issuance or adoption of a CBDC in Honduras could worsen these issues.

“Authorities systematically violate the constitution’s press freedom guarantees,” according to Freedom House. “Reporters and outlets covering sensitive topics or who are perceived as critical of the authorities risk assaults, threats, blocked transmissions, and harassment.” Unfortunately, a CBDC could be used as another tool in this effort. Across the world, governments have often turned to freezing and seizing the money of activists, political rivals, and protestors to undermine the opposition. A CBDC would make such initiatives easier by allowing governments to take direct control of each citizen’s finances.

Freedom House also reported that “Corruption was rampant [and the] Mission to Support the Fight against Corruption and Impunity in Honduras, established in 2016, was shut down in 2020 despite public support for that body.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.