Honduras Special Zone Embraces Bitcoin as Trade Currency

In a significant development, Próspera ZEDE, a specialized economic zone in Honduras, has embraced Bitcoin ($BTC) as an officially recognized unit for transactions.

This decision, announced by Jorge Colindres, the interim manager and Tax Commissioner of the zone, signifies a major step in accepting the legitimacy of cryptocurrencies in various business dealings, taxes, and financial operations.

According to the declaration made on January 5, legal entities within Próspera ZEDE, organized or registered under the Prospero Entity Registry Statute, now have the freedom to adopt Bitcoin as their primary unit for accounting and value representation. Entities interested in this integration must submit a notice to the Tax Commissioner within thirty days of the relevant tax period, citing an approved major cryptocurrency exchange like Kraken or Coinbase.

Until the Final $BTC Tax Payment Procedure is implemented, entities opting for Bitcoin will manage their tax liabilities using $BTC for internal accounting. However, these liabilities will be reported to Próspera ZEDE in either United States dollars or the local currency, Lempira.

Once the Final $BTC Tax Payment Procedure is in effect, tax obligations will be denominated in $BTC, and entities will be required to settle the corresponding amount in Bitcoin directly to Próspera ZEDE.

READ MORE: AI Giants Microsoft and OpenAI Hit With New Lawsuits

Furthermore, the statement unveiled an authorized form that entities can utilize for their Bitcoin designation. Próspera ZEDE’s General Service Provider is set to release the $BTC Election Notice form templates and update the eProspera eGovernance platform to facilitate seamless data entry and submission.

This decision within the economic zone follows previous speculation regarding Honduras considering Bitcoin as a legitimate form of currency, akin to El Salvador’s approach. Notably, in 2022, the Central Bank of Honduras refuted claims that the country had officially recognized Bitcoin as legal tender. The institution advised against using cryptocurrencies like Bitcoin in transactions, citing the lack of legal framework supporting such endeavors.