Próspera, a special economic zone in Roatan, Honduras, has officially recognized Bitcoin (BTC) as a unit of account, allowing it to be used to measure the market value of goods and services.
Próspera, a special economic zone in Roatan, Honduras, has officially recognized Bitcoin (BTC) as a unit of account, allowing it to be used to measure the market value of goods and services.
Jorge Colindres, the acting manager and tax commissioner of Próspera ZEDE (Zone for Employment and Economic Development), led the initiative. Colindres stated that the decision was made to provide more financial freedom to individuals and businesses operating in the area.
"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," Colindres said on Twitter.
The development means that businesses and individuals in Próspera can now use BTC to measure the value of goods and services, providing an alternative to the Honduran lempira and the US dollar.
However, Colindres noted that Próspera is unable to implement the "Final BTC Tax Payment Procedure" at the moment due to technological limitations and external regulatory issues. As a result, tax liabilities of Bitcoin-electing entities will be determined in reference to BTC for internal accounting purposes but reported to Próspera ZEDE in US dollars or the Honduran lempira. Once the issues are resolved, entities will be able to report tax liabilities and pay the corresponding amounts to Próspera ZEDE in BTC.
To use BTC as a unit of account, businesses and individuals must file a notice with Próspera's tax commission within 30 days of the relevant tax period. The notice must reference an approved cryptocurrency exchange, such as Coinbase or Kraken.
Próspera ZEDE was launched in May 2020 and became a special economic zone in April 2022. In the same year, it made BTC legal tender, following in the footsteps of El Salvador, which adopted BTC as legal tender in September 2021.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
