Próspera Special Economic Zone Embraces Bitcoin as Unit of Account
In a significant development, Próspera, a special economic zone in Roatan, Honduras, has officially recognized Bitcoin as a unit of account. This means that Bitcoin can now be used as a legitimate measure for determining the market value of goods and services within the jurisdiction of Próspera.
Legitimizing Bitcoin in Honduras’ Economic System
This move by Próspera is a groundbreaking step towards legitimizing Bitcoin for various commercial, tax, and financial transactions. It reflects a forward-thinking approach to incorporating cryptocurrency into economic activities and recognizes its utility beyond being just a store of value.
Jorge Colindres, the acting manager and tax commissioner of Próspera, stated that the decision was driven by the belief in financial freedom for residents and businesses. He emphasized that people should have the freedom to transact, keep their accounts, and report taxes in the currency of their choice.
The adoption of Bitcoin as a unit of account allows goods and services within the Próspera zone to be valued in terms of BTC. However, the implementation of the “Final BTC Tax Payment Procedure” is currently on hold due to technological constraints and unresolved regulatory matters.
Before this procedure can be operationalized, entities that choose to use Bitcoin for tax calculations will submit reports denominated in USD or Lempira. The Final BTC Tax Payment Procedure will mark the beginning of both BTC-denominated reporting and payment of tax liabilities.
Próspera ZEDE will provide pre-approved templates for declaring Bitcoin adoption and make necessary updates to accommodate data entry and filing functionalities on its eProspera platform.
Próspera as an Investment Hub
Próspera is praised as a beacon of competitiveness in Latin America, attracting over $100 million in investment and creating more than 3,000 jobs in just three years. It established Bitcoin as legal tender in April 2022, following El Salvador’s lead by seven months.
Despite rumors of wider Bitcoin adoption in Honduras, the Central Bank of Honduras has cautioned against using cryptocurrencies for transactions due to their unregulated status.
Hot Take: Próspera Paves the Way for Bitcoin Integration
The decision by Próspera to embrace Bitcoin as a unit of account is a significant milestone that paves the way for greater integration of cryptocurrencies into traditional economic systems. By recognizing Bitcoin’s value and utility beyond its role as a store of value, Próspera demonstrates a forward-thinking approach to economic development.
This move also positions Próspera as an attractive investment hub, drawing in substantial capital and creating employment opportunities. While there are still technological and regulatory challenges to overcome before the full implementation of BTC tax payments, this step sets the stage for further innovation and adoption of cryptocurrencies in the region.
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