coinculture.com
In less than two years since embracing Bitcoin as legal tender, Próspera, a special economic zone in Roatan, Honduras, has officially designated Bitcoin as a unit of account. This recognition allows Bitcoin to be used as a measuring unit for the market value of goods and services in the area. Spearheaded by Jorge Colindres, the acting manager and tax commissioner of Próspera Zone for Employment and Economic Development (ZEDE), the move aims to enhance financial freedom for individuals and businesses operating in the region.
Colindres, in a January 7 post on X (formerly Twitter), emphasised the belief in the right to financial and monetary freedom: “At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting and report taxes in the currency of their free choice.”
En @ProsperaZEDE creemos en el derecho a la libertad financiera y la libertad monetaria. Las personas deben ser libres de realizar transacciones, llevar su contabilidad y reportar impuestos en la moneda de su libre elección. #Honduras #BTC https://t.co/nlaFLtheRL
— Jorge Colindres (@GeorgeColindres) January 7, 2024
However, he noted that the “Final BTC Tax Payment Procedure” could not be implemented currently due to technological constraints with the eGovernance system and external regulatory issues. For the interim period, tax liabilities for Bitcoin-electing entities will be determined in BTC for internal accounting but reported to Próspera ZEDE in U.S. dollars or the Honduras lempira.
Once issues are resolved, entities opting for Bitcoin as their unit of account will report tax liabilities and make payments in BTC. Interested parties must file a notice with Próspera’s tax commission within 30 days of the relevant tax period, citing an approved cryptocurrency exchange like Coinbase or Kraken.
Launched in May 2020 on Roatan’s northern island, Próspera ZEDE made BTC legal tender in April 2022, about seven months after El Salvador adopted Bitcoin as legal tender nationwide in September 2021. Colindres highlights Próspera ZEDE as one of the “most competitive special regimes” in Latin America, attracting over $100 million in three years and creating more than 3,000 jobs across Honduras