Próspera zone in Honduras adopts BTC 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.

The latest move follows the zone’s adoption of Bitcoin as legal tender in April 2022, positioning Próspera as a leading figure in the global cryptocurrency landscape.

Jorge Colindres, the manager and tax commissioner of Próspera Zone for Employment and Economic Development (ZEDE), was instrumental in this initiative. He emphasized the region’s commitment to financial and monetary freedom, highlighting the freedom for individuals and businesses to conduct transactions and manage finances in their preferred currency.

The development enables businesses and individuals in Próspera to use Bitcoin as a standard for valuing goods and services.

However, Colindres acknowledged current challenges in implementing the “Final BTC Tax Payment Procedure.” He cited technological constraints within the eGovernance system and external regulatory hurdles as temporary setbacks.

Consequently, 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 wishing to adopt Bitcoin for accounting purposes must notify the Próspera tax commission, referencing an approved cryptocurrency exchange like Coinbase or Kraken. This process must be completed within 30 days of the relevant tax period.

Próspera ZEDE, established in May 2020 on Roatan Island, has shown a progressive stance towards cryptocurrencies, mirroring the approach of neighboring El Salvador, which declared Bitcoin a legal tender in September 2021.

However, at that time, the Central Bank of Honduras said it could not vouch for cryptocurrency transactions.

“Any transaction carried out with this type of virtual asset falls under the responsibility and risk of the person carrying it out,” the bank said earlier in a March 2022 statement.