Authorities in the city of Próspera, Honduras, announced that the provision of goods and services can now be accounted for in Bitcoin.
The city has taken another important step towards financial and technological innovation, becoming the first territory in the world to adopt Bitcoin as a reference currency for your transactions.
Próspera ZEDE, which operates the city's Zone for Employment and Economic Development (ZEDE), published a circular declaring Bitcoin as a unit of account for market value within its territory.
Through this measure, which came into effect on January 5, the private city and special economic zone seeks to facilitate commercial and financial transactions between participants in the autonomous zone, as well as attract investment and promote innovation.
The Honduran city was also the first in the country to take the initiative to make Bitcoin its legal tender.
During the Bitcoin Conference, which took place in Miami in 2022, Samson Mow informed the world that Próspera was already implementing Bitcoin within your local economy, highlighting the action as a milestone, both for the cryptocurrency and for the city, despite the Central Bank of Honduras' refusal and rejection of cryptocurrencies.
Bitcoin aligns with Próspera's principle of freedom
The interim manager and tax commissioner of the ZEDE, Jorge Colindres, highlighted that the adoption of Bitcoin as a monetary standard in the city will allow goods and services to be valued and quoted in the cryptocurrency, in addition to other available currencies.
Colindres explained in a message on the X platform (formerly Twitter), that the decision to adopt Bitcoin as a unit of account in the city is based on the principle of economic freedom that governs the ZEDE already Próspera, which seeks to offer more options and benefits to its residents and businesses.
The city of Próspera, located on the island of Roatán in Honduras, is an economic and social development project that is being promoted under the concept of Economic Development and Employment Zones or ZEDE, which grant administrative, tax and judicial autonomy to certain regions of the country. The objective of this city, according to its promoters, is to create a sustainable, inclusive and transparent development model that guarantees human rights and the environment.
According to the announcement made by the city authorities, the use of Bitcoin as a unit of account will contribute to financial stability, economic growth and social inclusion in the region, by reducing transaction costs, increasing competition and facilitating access to digital financial services.
You can't pay taxes with Bitcoin
Despite the efforts made by the city to promote the use of Bitcoin as a means of payment, unit of account and store of value in the country and in Latin America, the cryptocurrency is not yet a valid option for the payment of local taxes.
Therefore, entities that choose BTC as their unit of account must convert their tax obligations to US dollars or lempiras, which is the national currency of Honduras, before reporting them to the competent authorities.
Colindres explains that this situation is temporary and that work is being done to solve the problems of electronic governance and regulation that affect the use of Bitcoin as a method of payment for taxes.
While Bitcoin is not legally backed by the Honduran government, which has expressed opposition and concerns about the potential risks of cryptocurrency, the city of Próspera is a charter city governed by its own rules, institutions, services, and security. This is why, despite the Honduran government's rejection of Bitcoin, local authorities in Próspera chose to embrace cryptocurrency as a catalyst for innovation, financial inclusion, and global market leadership.
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