The Honduran Prospera Zone recognizes Bitcoin as an official unit of account
Prospera Zone in Honduras has officially recognized Bitcoin as a unit of account, expanding financial freedom. Acting Manager Jorge Colindres leads the initiative emphasizing financial flexibility. Despite the temporary restrictions, entities preferring Bitcoin can calculate tax obligations internally.
In a significant development, the Prospera Special Economic Zone (SEZ) in Roatan, Honduras has officially recognized Bitcoin (BTC) as a unit of account, reinforcing its commitment to financial innovation.
The move comes less than two years after the region accepted bitcoin as legal tender, signaling its progressive stance toward integrating cryptocurrencies into the traditional financial system.
For the purpose of financial freedom
Prospera Zone for Employment and Economic Development (ZEDE) Acting Manager and Tax Commissioner Jorge Colindres spearheaded this initiative with the aim of providing greater financial efficiency to residents and businesses operating in the SEZ. Colindres emphasized his belief in the right to money and financial freedom in a Jan. 7 announcement on Xx, explaining that individuals should be free to conduct transactions, bookkeeping and report taxes in the currency of their choice.
At @ProsperaZEDE we believe in financial freedom and the right to financial independence. People should be free to conduct transactions, do their accounts and report taxes in the currency of their choice. #Honduras #BTC
— Jorge Colindres (@GeorgeColindres) January 7, 2024
While the decision was lauded for its potential to foster financial independence, Colindres acknowledged some temporary limitations. The “Final BTC Tax Payment Process” is currently held up due to technological challenges with the eGovernance system and external regulatory hurdles. Despite this, entities that choose Bitcoin will calculate tax obligations using BTC internally, reporting to Prospera ZDE in US dollars or Honduran Lempira.
Colindres confirmed that if these challenges are resolved, businesses will be able to report and settle tax payments directly in BTC to Próspera ZEDE.
For businesses wishing to adopt Bitcoin as their primary currency, a formal request must be made to the Prospera Tax Committee within 30 days of the relevant tax period. This request should refer to an approved cryptocurrency exchange such as Coinbase or Kraken, highlighting SEZ's commitment to ensuring compliance and legality in the adoption process.
Prospera ZEDE Zone in Rotan Island
Launched in May 2020 on the northern island of Roatan, Prospera ZDE continues to position itself as one of the most competitive exclusive regimes in Latin America. With more than $100 million in revenue and the creation of more than 3,000 jobs across the country in its three-year tenure, Prospera is a testament to Honduras' commitment to embracing innovative financial solutions.
This move follows in the footsteps of Honduras' neighboring country, El Salvador, which made history by making BTC legal tender in 2021. Prospera Zed pioneers adopting Bitcoin as a unit of account will set a similar example for other regions. Steps taken to embrace the ever-evolving landscape of digital currencies.
