While shopping in Valle de Angeles a few years ago I saw a churro purse for the first time. I thought it was a neat idea, but ended up not getting it because it was small and probably overpriced because of the tourist market there. But this item had been in the back of my mind since then.
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:
Pretty much any type of glossy paper can be used. Here are some directions to make your own glossy recycled purse.
Updated to add the pics of his earrings and belt.