May 29, 2024
Bitcoin Now Measures Value in Honduran Special Zone
Bitcoin News

Bitcoin Now Measures Value in Honduran Special Zone

Próspera, a special economic zone in Roatan, Honduras, has taken a major step towards Bitcoin adoption by recognizing it as a unit of account. This means businesses and individuals within the zone can now measure the market value of goods and services directly in Bitcoin (BTC).

Jorge Colindres, acting manager and tax commissioner of Próspera ZEDE, spearheaded the initiative, emphasizing the zone’s commitment to “financial freedom and monetary freedom.” As he tweeted, “People should be free to carry out transactions, do their accounting and report taxes in the currency of their free choice.”

This recognition allows BTC to function as a standard value measure within Próspera, enabling seamless pricing and transactions in the cryptocurrency. However, technical limitations and certain regulatory issues currently prevent the full implementation of BTC tax payments.

As a temporary measure, businesses choosing BTC as their unit of account will internally calculate their tax liabilities in BTC but report them to Próspera ZEDE in USD or the Honduran lempira. Once the technical and regulatory hurdles are overcome, Colindres assures, tax liabilities and payments will be made entirely in BTC.

Businesses looking to utilize BTC as their unit of account need to file a formal notice with the Próspera tax commission within 30 days of each tax period. This notice must also reference an approved cryptocurrency exchange, such as Coinbase or Kraken, for reporting purposes.

Próspera ZEDE has been at the forefront of Bitcoin adoption in the region. It initially adopted BTC as legal tender in April 2022, following El Salvador’s lead seven months prior. Colindres touts Próspera as one of Latin America’s “most competitive special regime[s],” attracting over $100 million in investments and creating more than 3,000 jobs within its three-year existence.

With this latest move, Próspera further cements its position as a haven for Bitcoin enthusiasts and innovative economic models. By recognizing BTC as a unit of account, the zone paves the way for a future where cryptocurrencies play a more prominent role in everyday transactions and financial systems.

Image: Wikimedia Commons

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