Honduras Economic Zone Officially Recognizes Bitcoin as an Accounting Unit

Explore the groundbreaking decision of Honduras' Prospera Economic Zone to officially recognize Bitcoin as an accounting unit.

Understand the implications of this move for businesses and the future of cryptocurrency in mainstream financial operations.

Bitcoin Becomes a Measurable Currency Unit in Honduras' Prospera

January 5, 2024 - The Prospera Economic Zone in the Republic of Honduras, known for recognizing Bitcoin (BTC) as legal tender, has officially announced the adoption of Bitcoin as an accounting unit as of January 5, 2024.

Prospera ZEDE (Prospera Employment and Economic Development Zone), an economic zone launched in 2020 on the island of Roatán in northern Honduras, reported in April 2022 that Bitcoin was recognized as legal tender within its jurisdiction.

The recognition of Bitcoin as an accounting unit means that in this region, Bitcoin can now be used to measure the market value of various goods and services.

This initiative was led by Jorge Colindres, the Acting Administrator and Tax Commissioner of Prospera ZEDE. On January 5th, Mr. Colindres stated in a post, "People should be able to trade and account in the currency of their choice and declare their taxes accordingly."

Ultimate BTC Tax Payment Postponed Until Resolution of Issues

Entities and corporations registered in Prospera can now use Bitcoin as an accounting unit. Business entities wishing to use BTC for this purpose must notify the Tax Commissioner within 30 days of the relevant tax period.

However, due to external regulatory issues and technical problems with the e-governance system, the final BTC tax payment procedure cannot be implemented at present.

It's reported, "For entities opting for BTC, tax obligations will be determined internally based on BTC, but for the time being, will be declared to Prospera ZEDE in U.S. dollars or the local currency, Lempira."

Once current issues are resolved, and BTC tax payments become feasible, tax obligations will be reported based on BTC, and companies will also make payments in BTC.

Bitcoin is also recognized as legal tender in El Salvador, and in November last year, a bill was proposed in Germany to recognize BTC as legal tender.

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