Less than two years after incorporating Bitcoin as legal tender, Próspera, a special economic zone in Roatan, Honduras, has formally acknowledged Bitcoin as a unit of account.
Thank you for reading this post, don't forget to subscribe!Jorge Colindres, the current manager and tax commissioner of Próspera ZEDE (Zone for Employment and Economic Development), took the lead in spearheading this initiative on January 5th.
In a post on X (formerly Twitter) on January 7th, Colindres stated that the intention behind the move was to provide greater financial autonomy to individuals and businesses within the region.
“At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice.”
This advancement allows BTC to function as a monetary unit for assessing the market value of diverse goods and services within the Próspera zone.
However, Colindres mentioned that the implementation of the “Final BTC Tax Payment Procedure” is currently not feasible, citing technological constraints with the eGovernance system and external regulatory issues.
In the meantime, entities opting for Bitcoin will calculate their tax obligations internally in reference to BTC. However, when reporting to Próspera ZEDE, the figures will be presented in either United States dollars or the Honduras lempira.
Upon resolution of the issues, entities will, according to Colindres, disclose and settle their tax liabilities with Próspera ZEDE in BTC. Individuals or businesses aiming to adopt BTC as their unit of account must submit a notice to Próspera’s tax commission within 30 days of the applicable tax period.
Colindres specified that the notice must make mention of an accredited cryptocurrency exchange, such as Coinbase or Kraken.
Established in May 2020 on the northern island of Roatan, Próspera ZEDE officially recognized BTC as a legal tender in April 2022. This move occurred approximately seven months after El Salvador, a neighboring country to Honduras, adopted cryptocurrency as legal tender nationwide in September 2021.
Colindres recently characterized Próspera ZEDE as one of the “most competitive special regimes” in Latin America. He highlighted its impressive track record, noting that the region has attracted over $100 million in the three years since its inception and has contributed to the creation of more than 3,000 jobs throughout the country.
