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Honduran special economic zone adopts Bitcoin as unit of account

Honduran special economic zone adopts Bitcoin as unit of account

Próspera ZEDE, the Honduras special economic zone, has officially recognized Bitcoin (BTC) as a unit of account. This move effectively acknowledges the legitimacy of the cryptocurrency in diverse commercial, tax, and financial transactions.

The announcement, disclosed on January 5 by Jorge Colindres, the acting manager and Tax Commissioner of the zone, outlined the conditions under which legal entities can adopt Bitcoin as their unit of account.

“Próspera ZEDE recognizes the right of (e)Resident legal entities organized or registered under the authority of the Prospero Entity Registry Statute to use Bitcoin (“BTC”) as their respective unit of account, in the sense of the monetary unit or measure of value in terms of which their accounts are kept and values stated,” the statement said. 

For instance, entities interested in adopting Bitcoin as their unit of account must file a notice with the Tax Commissioner within thirty days of the relevant tax period. The notice should reference an approved major cryptocurrency exchange, such as Kraken or Coinbase.

Until the implementation of the Final BTC Tax Payment Procedure, tax liabilities of Bitcoin-electing entities will be determined in reference to BTC for internal accounting purposes but reported to Próspera ZEDE in United States dollars or local currency Lempira.

Upon the implementation of the Final BTC Tax Payment Procedure, tax liabilities will be reported in BTC, and entities will pay the corresponding amount to Próspera ZEDE in Bitcoin.

The statement also included an approved form that entities can use for their Bitcoin election. Próspera ZEDE’s General Service Provider will publish the BTC Election Notice form templates and update the eProspera eGovernance platform to include corresponding data entry and filings.

It is worth noting that the economic zone’s decision came after previous rumors circulated that Honduras was on the verge of approving Bitcoin as legal tender. Speculations were rampant that the country might follow in the footsteps of El Salvador in acknowledging the legality of Bitcoin.

Interestingly, in 2022, the Central Bank of Honduras released a statement refuting the news that the country had declared Bitcoin legal. In the statement, the institution cautioned against using cryptocurrencies like Bitcoin in payment scenarios, emphasizing the lack of legal backing for such transactions.

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