Próspera, a special economic zone in Roatan, Honduras, has officially recognized Bitcoin as a unit of account less than two years after adopting it as legal tender. This means Bitcoin can now be used to measure the market value of goods and services in the area. The initiative was led by Jorge Colindres, the acting manager and tax commissioner of Próspera ZEDE (Zone for Employment and Economic Development), who announced the development on January 5.
In a post on X (formerly Twitter) on January 7, Colindres explained that the move was aimed at offering more financial freedom to individuals and businesses operating in the area. He stated, “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.”
However, Colindres also noted that the “Final BTC Tax Payment Procedure” cannot be implemented at the moment due to technological limitations with its eGovernance system and some 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 United States dollars or the Honduras lempira. Once these issues are resolved, entities will report tax liabilities (and pay the corresponding amounts) to Próspera ZEDE in BTC.
Entities interested in making BTC their unit of account must file a notice with the Próspera’s tax commission within 30 days of the relevant tax period. The notice should reference an approved cryptocurrency exchange, such as Coinbase or Kraken.
Próspera ZEDE was launched in May 2020 on the northern island of Roatan. The region made BTC legal tender in April 2022, about seven months after El Salvador, Honduras’ neighbor, made the cryptocurrency legal tender across the whole country in September 2021. Colindres recently described Próspera ZEDE as one of the “most competitive special regime[s]” in Latin America, which he says has received more than $100 million in its three-year tenure and created more than 3,000 jobs across the country.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇭🇳 🇸🇻 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Jorge Colindres |
| Companies | Próspera, Kraken, X (formerly Twitter), Coinbase, Próspera ZEDE (Zone for Employment and Economic Development) |
| Currencies | united states dollars, Bitcoin, honduras lempira |
| Securities | None |
