Bitcoin As A Standard Unit Of Value
A special economic region in Roatan, Honduras, called Próspera, has legally accepted Bitcoin as a standard of value for goods and services. This development marks a momentous milestone less than two years after the region announced the adoption of Bitcoin as a legal tender.
Jorge Colindres, director and tax commissioner of the Próspera Zone for Employment and Economic Development (ZEDE), spearheaded this innovative initiative. The region’s authorities recently made the announcement public, signifying a momentous juncture in the progression of cryptocurrency acceptance within this distinctive economic region.
Meanwhile, Colindres posted on his X handle to explain the rationale for this choice, stating that the objective of this approval is to enhance financial autonomy for local businesses and individuals, thereby empowering them.
This official acknowledgment of Bitcoin elevates it to a standardized monetary unit. Accordingly, this will facilitate its application in the Próspera zone for measuring various products and services.
Using BTC As A Transaction Reference
With implementing the zone’s “Final BTC Tax Payment Procedure” being impracticable, Colindres explained that this was due to technological limitations inside their eGovernance system and external regulatory obstacles.
Following this approval, organizations that choose Bitcoin as their preferred currency will compute their tax liabilities internally using Bitcoin as a reference. However, they will report these amounts to Próspera ZEDE in US dollars or Honduran lempira.
Colindres has guaranteed that entities would transition to reporting and paying their tax obligations directly in Bitcoin over time. Also, submitting a formal notice to Próspera’s tax commission within thirty days of the relevant tax period is mandatory for those interested in adopting Bitcoin as the unit of account.
In his notification, Colindres indicated that regulated crypto exchanges such as Coinbase or Kraken should be specified as a reference point for performing transactions involving digital assets.
The Próspera ZEDE Economic Zone
Próspera ZEDE debuted in May 2020, laying its foundation on the northern island of Roatan. Almost seven months after El Salvador’s landmark resolution to adopt Bitcoin as legal tender statewide in September 2021, this region made its critical action: to embrace the same asset as a unit of exchange in April 2022.
Colindres recently praised Próspera ZEDE as one of the special regimes in Latin America with a more fiercely competitive economy. Throughout its three-year existence, the region has generated over 3,000 job possibilities nationwide and an influx of over $100 million. He boasted that no other country or zone could match the region’s astounding accomplishments in this continent yet.
During this period, Próspera has established itself as a pioneer in adopting innovative technologies among other economic zones in the region, highlighting its meteoric rise within its short period of existence. In addition to bolstering Próspera’s position as an attractive location for investment and job creation, Colindres’s honors highlight Próspera authorities’ positive influence on its socio-economic landscape.
The zone’s rising importance indicates that it serves as a model for other special economic zones across Latin America in that it attracts significant investments that accelerate employment possibilities. Meanwhile, Honduras has officially joined its Central American neighbor, El Salvador, in recognizing Bitcoin as a medium of exchange.
