Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
In a noteworthy advancement, Próspera, a special economic zone situated in Roatan, Honduras, has adopted Bitcoin as a unit of account, reinforcing its position as legal tender in the area.
This important achievement took place in under two years since Próspera initially incorporated the cryptocurrency into its economic system.
By formally acknowledging Bitcoin as a unit of account, Próspera has made a pioneering move, enabling the cryptocurrency to function as a valid standard for assessing the market value of various goods and services within its jurisdiction.
See Also: German Lawmaker Pushes For Bitcoin To Become Legal Tender
Legitimizing Bitcoin In Honduras’ Economic System
Announced on January 5 by Jorge Colindres, who is currently the acting manager and tax commissioner of the zone, this declaration represents a significant advancement toward legitimizing Bitcoin for a variety of commercial, tax, and financial activities.
The choice made by Próspera highlights a progressive strategy for integrating cryptocurrency into different facets of economic operations, demonstrating the acknowledgment of its usefulness beyond being merely a store of value.
Colindres, in a post on the rebranded X platform dated January 7, mentioned financial freedom for residents and businesses as the primary motivation behind the decision.
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
The acceptance of Bitcoin as a unit of account facilitates the valuation of goods and services within the Próspera zone in terms of BTC.
Related Posts
Colindres noted that the rollout of the “Final BTC Tax Payment Procedure” is currently paused due to technological limitations within the eGovernance system and pending regulatory issues.
Before the implementation of the Final BTC Tax Payment Procedure, entities opting for Bitcoin will perform internal tax calculations in BTC, ultimately submitting reports to Próspera ZEDE in USD or Lempira.
The initiation of the Final BTC Tax Payment Procedure will signal the start of both BTC-denominated reporting and tax liability payments.
Próspera ZEDE will also provide pre-approved templates for declaring Bitcoin adoption and will make necessary updates to the eProspera platform to support data entry and filing capabilities.
Importantly, the economic zone’s resolution came after widespread speculation indicating that Honduras was nearing the endorsement of Bitcoin as an official medium of exchange.
Widespread rumors suggested the possibility of the country following El Salvador’s example in legitimizing Bitcoin, generating anticipation and discussions regarding the potential adoption of the cryptocurrency within Honduras.
See Also: Despite Legalizing Bitcoin, El Salvador Struggles With Low Bitcoin Adoption Rates
Próspera As An Investment Hub
Colindres praised Próspera as a symbol of “competitiveness” in Latin America, emphasizing its three-year record of over $100 million in investments and the creation of more than 3,000 jobs.
Emerging in May 2020, Próspera ZEDE established Bitcoin’s legal tender status in April 2022, seven months after El Salvador’s national initiative.
Despite speculation, the Central Bank of Honduras dismissed rumors of broader Bitcoin adoption in 2022, advising caution when utilizing such cryptocurrencies for transactions due to their unregulated nature.
The post Próspera, Honduras Has Embraced Bitcoin As A Unit Of Account appeared first on BitcoinWorld.
