HONDURAS’ PROSPERA ZONE ADOPTS BITCOIN AS UNIT OF ACCOUNT 

Próspera, an autonomous economic zone on Roatán, Honduras, has taken a significant step in embracing digital currency by officially recognizing Bitcoin as a unit of account. This move allows Bitcoin to be used for valuing goods and services within the zone. Announced by Jorge Colindres, the tax commissioner and acting manager of Próspera Zone for Employment and Economic Development (ZEDE), on January 5, this development aims to enhance financial and monetary freedom for individuals and businesses in the area.

Colindres, in a January 7 post on X (formerly Twitter), expressed that this initiative is rooted in the belief in the right to financial and monetary freedom. He stated, “People should be free to carry out transactions, do their accounting and report taxes in the currency of their free choice.”

This recognition of Bitcoin as a unit of account means that it can now be utilized to determine the market value of a diverse range of goods and services within Próspera. However, Colindres noted that the “Final BTC Tax Payment Procedure” cannot be implemented currently due to technological challenges in the eGovernance system and certain external regulatory constraints. Consequently, while tax liabilities of Bitcoin-using entities will be internally accounted for in Bitcoin, they will be reported to Próspera ZEDE in either U.S. dollars or Honduran lempiras until these issues are resolved.

Businesses interested in adopting Bitcoin as their unit of account must notify Próspera’s tax commission within 30 days of the relevant tax period, specifying an approved cryptocurrency exchange like Coinbase or Kraken for reference.

Próspera ZEDE, established in May 2020 on the northern island of Roatan, declared Bitcoin as legal tender in April 2022, following in the footsteps of its neighbor El Salvador, which made the cryptocurrency legal tender nationwide in September 2021. Colindres has lauded Próspera ZEDE as one of the most competitive special regimes in Latin America, highlighting its success in attracting over $100 million in investments and creating more than 3,000 jobs in three years.

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