While visiting Arada, Santa Barbara recently to get to know the hometown of a friend, I was able to come in contact again with the churro purse. We were visiting the nacimientos of the town and my friend told me there was one where the owner was also know for his churro artesania. Not only does he make purses out of chip wrappers, he also makes earrings, in addition to belts made out of pop can tabs. He is the owner of a pulperia and his customers leave their chip wrappers behind as material for his craft. The purses are sold for 100 lempira or around $5. Here is the artist:
Updated to add the pics of his earrings and belt.