Prospera Embraces Bitcoin as Unit of Account
The city of Prospera in Honduras has recently made a significant move towards establishing a bitcoin-based economy. On January 5, the city announced its approval to use bitcoin as a unit of account, allowing prices and taxes to be denominated and paid in bitcoin. This decision has been supported by Jorge Colindres, the General Secretary of Prospera, who believes in the freedom to transact and report taxes in the currency of one’s choice.
Paving the Way for a Bitcoin Circular Economy
By adopting BTC as a unit of account, Prospera aims to create a bitcoin circular economy within its city limits. Since bitcoin has been accepted as legal tender in Prospera since 2022, this move presents an exciting opportunity for residents and businesses to build a modern and efficient economic ecosystem.
Challenges in Tax Payment with BTC
Although taxes can now be declared in BTC, payment using bitcoin is currently on hold due to external regulatory issues and technical limitations in the electronic tax payment system. As a result, tax duties will be reported to authorities in U.S. dollars or Honduran lempiras, while being declared in BTC.
Honduras’ Stance on Bitcoin
While there were rumors about Honduras adopting bitcoin as legal tender in 2022, the central bank of the country dispelled these rumors and emphasized that bitcoin is not a regulated currency and does not hold the status of legal tender. The central bank also issued warnings about the risks associated with cryptocurrencies.
Independence and Criticism
Prospera has the authority to make independent decisions under the Development and Employment Zone (ZEDE) designation. However, this has sparked criticism from parts of Honduran society that view these zones as a violation of the country’s constitution and sovereignty.
Hot Take: Prospering with Bitcoin
The adoption of bitcoin as a unit of account in Prospera paves the way for a unique economic experiment. By embracing cryptocurrency, the city aims to foster financial freedom and establish a modern and efficient economic ecosystem. While challenges remain in terms of tax payment, this bold move sets Prospera apart as a pioneer in the crypto world. As the adoption of cryptocurrencies continues to evolve around the globe, Prospera serves as an intriguing case study on the potential of bitcoin in driving economic growth and innovation.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.