Próspera Adopts Bitcoin as Unit of Account
Próspera, a special economic zone in Honduras’ Roatan Island, has officially adopted Bitcoin (BTC) as a unit of account for valuing goods and services. This move comes after Próspera’s adoption of Bitcoin as legal tender in April 2022, establishing the zone as a prominent player in the global cryptocurrency landscape.
Emphasizing Financial Freedom
Jorge Colindres, the manager and tax commissioner of Próspera Zone for Employment and Economic Development (ZEDE), played a key role in this initiative. He highlighted the region’s commitment to financial and monetary freedom, allowing individuals and businesses to transact and manage finances in their preferred currency.
Bitcoin for Valuing Goods and Services
The adoption of Bitcoin enables businesses and individuals in Próspera to use it as a standard for valuing goods and services. However, there are challenges in implementing the “Final BTC Tax Payment Procedure” due to technological constraints within the eGovernance system and external regulatory hurdles.
Tax Reporting Still in Traditional Currency
While internal accounting can be done in Bitcoin, tax liabilities will still be reported in US dollars or Honduran lempira until these issues are resolved. Entities interested in adopting Bitcoin for accounting must notify the Próspera tax commission within 30 days of the relevant tax period, referencing an approved cryptocurrency exchange like Coinbase or Kraken.
A Progressive Stance on Cryptocurrencies
Próspera ZEDE has demonstrated a progressive stance towards cryptocurrencies since its establishment in May 2020. This mirrors the approach of neighboring El Salvador, which declared Bitcoin as legal tender. However, the Central Bank of Honduras has previously stated that it cannot vouch for cryptocurrency transactions, placing the responsibility and risk on the individuals involved.
Hot Take: Próspera Paves the Way for Crypto Adoption
Próspera’s adoption of Bitcoin as a unit of account further solidifies its position as a leader in the crypto space. By embracing financial and monetary freedom, Próspera is paving the way for greater adoption of cryptocurrencies in other regions. While challenges remain, this move showcases the growing acceptance and integration of Bitcoin into mainstream economic systems.
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