Jorge Colindres, the acting manager and tax commissioner of the Próspera Zone for Employment and Economic Development (ZEDE) in Honduras, announced on January 5th that Bitcoin can now be officially used as a unit of account for goods and services within the special economic zone. This new development, coming less than two years after Próspera adopted Bitcoin as legal tender in April 2022, expands the financial and monetary freedom of individuals and businesses operating in the region by enabling them to measure and express market values in Bitcoin.
While announcing the move in a post on January 2024, Colindres cited the right to financial and monetary freedom as motivation, stating that people should have the freedom to conduct transactions, accounting, and tax reporting in the currency of their choice. Under the new policy, entities can elect to calculate tax liabilities and do internal accounting in Bitcoin, referencing approved exchanges like oinbase">Coinbase and Kraken. For now, due to the technological limitations of Próspera’s eGovernance system and external regulatory issues, taxes will still be reported and paid in US dollars or Honduran lempiras. Once these issues are resolved, entities will be able to report and pay taxes directly in Bitcoin.
Colindres described Próspera ZEDE as one of the most competitive special regimes in Latin America, attracting over $100 million in investment and creating thousands of jobs for Honduras in just three years of operation. The adoption of Bitcoin as a unit of account furthers the zone’s goals of providing financial freedom and economic development.
