Bitcoin has officially been recognized as a unit of account in Próspera — a special economic zone in Honduras. This announcement, made on January 5 by Jorge Colindres, the acting manager and tax commissioner of the zone, signifies a significant step towards legitimizing Bitcoin for various commercial, tax, and financial transactions.
Entities operating within the Próspera ZEDE and organized or registered under the Prospero Entity Registry Statute are now allowed to use Bitcoin as their unit of account. This includes keeping accounts and state values in terms of Bitcoin.
However, entities opting for Bitcoin adoption must notify the Tax Commissioner within 30 days of the relevant tax period. Additionally, they must reference an approved major cryptocurrency exchange, such as Kraken or Coinbase.
In September 2021, El Salvador became the first country to establish Bitcoin as legal tender. As a result, Bitcoin is now accepted for tax payments, settling debts, and businesses can use it as a medium of exchange.
To encourage adoption, the government of El Salvador provided financial incentives for citizens to download a special cryptocurrency app. Remarkably, when the Bitcoin law took effect, half of the nation’s households had already downloaded the app.
Earlier in 2023, it was reported that the Central Bank of Honduras (BCH) refuted social media speculations regarding a potential imminent announcement declaring Bitcoin (BTC) as legal tender in the Latin American nation.
In an official statement released in Spanish, the BCH clarified, “Bitcoin is currently not regulated in our country.” The bank emphasized that it exclusively serves as the issuer of legal tender in Honduras, and the official currency remains the lempira. Ten months later, a region of the nation is being granted permission to accept the most revered cryptocurrency in the world.
As per Honduras, despite the absence of the Final BTC Tax Payment Procedure, businesses opting for Bitcoin as their unit of account will compute their tax obligations in BTC for internal accounting. Nevertheless, they are required to declare these liabilities in either US dollars or the local currency, Lempira, to Próspera ZEDE.
Upon the establishment of the final procedure, entities will have the option to report and settle their tax liabilities directly in Bitcoin. Próspera ZEDE plans to furnish pre-approved form templates, simplifying the declaration process for businesses.
