Bitcoin Acknowledged as Unit of Account in Honduran Economic Zone Próspera
Summary:
Próspera, a special economic zone in Roatan, Honduras, has officially recognized Bitcoin as a unit of account, indicating that it can be used for valuing goods and services. The move was initiated by Jorge Colindres, Próspera ZEDE's acting manager and tax commissioner. While the “Final BTC Tax Payment Procedure” isn't in place yet due to technological and regulatory constraints, Colindres revealed that future tax liabilities would be reported and paid in Bitcoin once issues are resolved. The initiative, started in May 2020, has reportedly received over $100 million and created 3,000 jobs across the country.
In less than two years since accepting Bitcoin (BTC) as a legal mode of payment, Próspera, a special economic zone in Roatan, Honduras, has now officially recognized Bitcoin as a measure of value. This means Bitcoin can be employed to determine the market value of goods and services in the region. This initiative, introduced by Próspera ZEDE (Zone for Employment and Economic Development) manager and tax commissioner Jorge Colindres on January 5, seeks to provide greater financial autonomy to individuals and businesses in the region.
Following this development, Colindres announced through a post on X (formerly known as Twitter) that financial freedom and monetary independence are the reasons behind this move, stating that people should have the liberty to transact, maintain their accounts and pay taxes in their preferred currency.
As a result, Bitcoin can now operate as a monetary unit to value different goods and services within the Próspera region, Colindres states. He also mentioned the inability to facilitate the “Final BTC Tax Payment Procedure” currently, citing system limitations and external regulations as possible setbacks to the project.
For now, Bitcoin's usage for taxing purposes will be for internal account management only, while taxes will be officially reported to Próspera ZEDE in USD or the local Honduran currency—Lempira. Once all complications are ironed out, taxable amounts will be reported and paid in Bitcoin, according to Colindres.
Those wishing to use Bitcoin as their unit of account will have to submit a notice to the Próspera's tax commission within a month of the given tax season. He added that specific cryptocurrency exchanges, like Coinbase and Kraken, should be referenced in the notification.
Próspera ZEDE was established in May of 2020 on the North island of Roatan. It accepted Bitcoin as legal tender in April 2022—seven months after the nationwide acceptance of the cryptocurrency by Honduras’ neighbor, El Salvador in September 2021.
Recently, Colindres characterized Próspera ZEDE as one of Latin America's "most competitive special regimes" which has attracted more than $100 million and generated over 3,000 job opportunities across the country in its three years of existence.
Published At
1/8/2024 3:28:08 AM
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