Próspera Special Economic Zone Embraces Bitcoin as Unit of Account

Próspera, a special economic zone located in Roatan, Honduras, has officially recognized Bitcoin as a unit of account. This means that it may now be used to quantify the market value of products and services.

This recognition comes less than two years after the adoption of Bitcoin as legal cash. Beginning on January 5th, Jorge Colindres, who is currently serving as the acting manager and tax commissioner of the Próspera Zone for Employment and Economic Development (ZEDE), was the driving force behind the development.

At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting and report taxes in the currency of their free choice.”

On January 7, Colindres published a message on X (formerly known as Twitter), stating that the purpose is to provide individuals and businesses working in the region with increased financial independence.

X post from Jorge Colindres on Jan. 7. Source: X

As a result of this new development, individuals and businesses within the Próspera zone can now use Bitcoin as a monetary unit to determine the market worth of a variety of goods and services.

On the other hand, Colindres stated that it was unable to implement the “Final BTC Tax Payment Procedure” at present.

The form that prospective businesses requesting to use Bitcoin as a unit of account must fill out. Source: Próspera ZEDE

The company cited technological difficulties with its eGovernance system in addition to some external regulatory issues as the reasons for this determination.

For internal accounting, Bitcoin-electing firms shall determine their tax liabilities in BTC, however, they will report these liabilities to Próspera ZEDE in either the United States dollar or the Honduras lempira.

Colindres mentioned that once the problems have been fixed, entities will declare their tax liabilities to Próspera ZEDE in Bitcoin and pay the amounts that correspond to those liabilities.

Within thirty days of the end of the applicable tax period, individuals who are interested in making Bitcoin their unit of account are required to submit a notice to the tax commission of the Próspera.

Colindres suggested including an authorized bitcoin exchange, such as Coinbase or Kraken, in the warning. Próspera ZEDE launched on the island of Roatan in the northern Caribbean in May 2020.

Seven months after El Salvador, Honduras’ neighbor, made Bitcoin legal tender across the entire country in September 2021, the area made Bitcoin legal tender in April 2022. This was around seven months after El Salvador made Bitcoin legal tender.

Próspera ZEDE, which Colindres recently referred to as one of the “most competitive special regimes” in Latin America, has reportedly been awarded more than one hundred million dollars throughout its three-year existence and has been responsible for the creation of more than three thousand jobs everywhere in the country.