FX.co ★ Special economic zone in Honduras recognizes BTC as unit of account

The number one cryptocurrency opened the new year with a rise. Later, the positive trend was supported by favorable forecasts. Economists foresee unprecedented growth in BTC. On top of that, Bitcoin has been officially recognized as a unit of account in Próspera, a special economic zone in Honduras.

The monetary authorities of Próspera, a special economic zone in Roatan, Honduras, have officially recognized Bitcoin as a unit of account. Now, it can be used to measure the market value of goods and services. Earlier, in 2022, Próspera adopted Bitcoin as a legal tender.

The idea to expand the BTC application was offered by Jorge Colindres, the acting manager and tax commissioner of the Próspera Zone for Employment and Economic Development (ZEDE).

Jorge Colindres explained such a decision with the intention to provide individuals and businesses operating in the area with more financial freedom. “People should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice,” he said.

However, at present, it is impossible to pay taxes in Bitcoin because of the eGovernance technical limitations. The foreign policy and economic difficulties associated with the crypto curerncy's legal status also add fuel to the situation.

The tax liabilities of the companies that operate in Próspera and that have chosen BTC as the main currency are only for internal accounting purposes. Meanwhile, government financial reports are submitted in the US dollar or the Honduras lempira.

Earlier, in July 2022, Honduras launched “Bitcoin Valley” in the tourist town of Santa Lucia. Last August, the Binance crypto exchange launched the Send Cash service, thanks to which its users from nine Latin American countries, including Honduras, can transfer crypto assets via Binance Pay to bank accounts.