In a significant move, Próspera ZEDE, a special economic zone in Honduras, has officially recognised Bitcoin (BTC) as a unit of account.
Announced on January 5 by Jorge Colindres, the acting manager and tax commissioner of the zone, this decision marks a notable step in legitimising the cryptocurrency for a range of commercial, tax and financial transactions.
The move allows eResident legal entities, organised or registered under the Prospero Entity Registry Statute, to use Bitcoin as their unit of account.
Highlights
This includes keeping accounts and stating values in terms of Bitcoin.
However, entities wishing to adopt Bitcoin must notify the Tax Commissioner within 30 days of the relevant tax period, referencing an approved major cryptocurrency exchange like Kraken or Coinbase (NASDAQ:COIN).
Until the Final BTC Tax Payment Procedure is implemented, Bitcoin-electing entities will calculate their tax liabilities in BTC for internal accounting but report them in US dollars or the local currency, Lempira, to Próspera ZEDE.
Once the final procedure is in place, tax liabilities will be reported and paid in Bitcoin.
Próspera ZEDE will also provide approved form templates for entities to declare their Bitcoin election and update the eProspera eGovernance platform for necessary data entry and filings.
Significant shift
This move follows past rumours about Honduras possibly adopting Bitcoin as legal tender, similar to El Salvador.
However, in 2022, the Central Bank of Honduras refuted such claims and cautioned against using cryptocurrencies like Bitcoin in payments, citing their lack of legal backing.
The recent development in Próspera ZEDE, therefore, marks a significant shift in the country's approach to cryptocurrency.