Bitcoin adoption has received a significant boost as the Honduran Special Economic Zone Próspera ZEDE officially acknowledges the flagship cryptocurrency as a unit of account. In a groundbreaking move, BTC can now be utilized to gauge the market value of goods and services, making Próspera ZEDE the first jurisdiction worldwide to implement such a measure. This announcement is poised to attract Bitcoin-related businesses globally, encouraging them to explore the potential opportunities that this recognition brings.
The driving force behind this initiative is Jorge Colindres, the acting manager and tax commissioner of Próspera ZEDE, who disclosed the current inability to implement the “Final BTC Tax Payment Procedure” due to technological challenges within its eGovernance system and external regulatory issues.
Presently, tax obligations for entities opting for Bitcoin will be calculated in reference to BTC for internal accounting but reported to Próspera ZEDE in United States dollars or the Honduras lempira. Colindres explained that new entities could adopt this system later or submit a sworn statement attesting to no business operations before the BTC election, with the aim of avoiding midyear swaps between accounting regimes.
Apply for Bitcoin by January 30
Once the technological and regulatory challenges are solved, entities will report and pay tax liabilities to Próspera ZEDE in BTC. Interested entities seeking to adopt BTC as a unit of account must submit a notification to the Commissioner of Revenue within thirty days of the relevant tax period, as outlined in the announcement. Notably, the deadline to apply for BTC as a unit of account for the 2024 tax year is January 30, 2024.
Prominent Bitcoin advocates, actively engaged in the preparatory discussions, have hinted at more information being released soon. The move has been praised by many in the community, especially considering that the region had already legalized BTC in April 2022, approximately seven months after El Salvador, its neighboring country, declared cryptocurrency legal tender across the entire nation in September 2021. This innovative initiative sets the stage for increased innovation, financial inclusion, and global market leadership, positioning Hondurans at the forefront of the digital economy and poised to shape the future.