BTC becomes official unit of account in Honduras’ Próspera zone
Próspera, a special economic zone located on Roatan Island in Honduras, has officially embraced Bitcoin (BTC) as its chosen unit of account for evaluating goods and services. This recent development comes after the zone’s adoption of Bitcoin as legal tender in April 2022, solidifying Próspera’s position as a prominent player in the global cryptocurrency landscape.
Jorge Colindres, the manager and tax commissioner of Próspera Zone for Employment and Economic Development (ZEDE), played a crucial role in spearheading this initiative. He emphasized the region’s unwavering commitment to financial and monetary freedom, highlighting the importance of allowing individuals and businesses to conduct transactions and manage their finances using their preferred currency.
This new development empowers businesses and individuals in Próspera to utilize Bitcoin as a standard for valuing goods and services. However, Colindres acknowledged that there are currently some challenges in implementing the “Final BTC Tax Payment Procedure.” He identified technological limitations within the eGovernance system and external regulatory obstacles as temporary setbacks.
Consequently, while internal accounting can be conducted using Bitcoin, tax obligations will still be reported in either US dollars or Honduran lempira until these issues are resolved. Entities interested in adopting Bitcoin for accounting purposes must inform the Próspera tax commission and reference an approved cryptocurrency exchange such as Coinbase or Kraken. This process must be completed within 30 days of the relevant tax period.
Established in May 2020 on Roatan Island, Próspera ZEDE has consistently demonstrated a progressive approach towards cryptocurrencies, echoing the stance taken by neighboring El Salvador, which declared Bitcoin as legal tender in September 2021. However, the Central Bank of Honduras previously stated that it could not guarantee cryptocurrency transactions, asserting that any transactions involving virtual assets were solely the responsibility and risk of the individuals conducting them.
For more information, please read: El Salvador approves launch of Bitcoin volcano bonds for Q1 2024. Stay updated with us on Google News.
