Bitcoin Becomes an Official Unit of Account in Prospera, Honduras

Prospera, a special economic zone in Roatan, Honduras, has recognized Bitcoin as a unit of account. The regional government announced the decision via a press release by Prospera ZEDE (Zone for Employment and Economic Development) on January 5, 2024. According to the announcement, residents of the zone can use Bitcoin as a unit of account after fulfilling the requirements of a specified Binding Practice Note.

Following the development, Jorge Colindres, the acting manager and tax commissioner of Próspera ZEDE, noted that people should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice. In a post on X (formerly Twitter), the commissioner highlighted Prospera ZEDE’s belief in the right to financial and monetary freedom.

Colindres further noted that the constitution empowers ZEDE autonomously to make such decisions. Hence, they have brought more than $100 million of investment to Honduras by attracting more than 160 companies and creating more than 1,200 jobs.

Prospera adopted Bitcoin as a legal tender in April 2022 and declared that residents won’t have to pay capital gains tax on the flagship cryptocurrency. At the time, the region’s President, Joel Bomgar, noted that residents of Prospera would be able to pay taxes and fees to the jurisdiction using Bitcoin.

Prospera ZEDE’s recent publication cited technical limitations of its eGovernance system and external regulatory limitations as reasons why the Final BTC Tax Payment Procedure cannot be implemented immediately. However, it noted that the Tax Commissioner would use reasonable efforts in coordination with other stakeholders to enable the provision of such eGovernance and the necessary financial services.