Less than two years after adopting Bitcoin as legal tender, Prospela, a special economic zone in Roatan, Honduras, has taken a significant step by officially recognizing Bitcoin as a unit of account. This advancement, led by Jorge Colindres, the acting manager and tax commissioner of Prospela Employment and Economic Development Zone (ZEDE), enables Bitcoin to be used for valuing goods and services in the market.
Jorge Colindres, on January 7, announced this development in a post on X (formerly known as Twitter). He explained that the decision was driven by the desire to enhance financial and monetary freedom for individuals and businesses in the region. Colindres emphasized, "At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to transact, account, and file taxes in the currency of their choice."
However, Colindres acknowledged current challenges in fully implementing Bitcoin for tax processes, citing technical issues with their e-government system and external regulatory complications. For now, entities in Prospela choosing to use Bitcoin will have their tax liabilities calculated in Bitcoin but reported in U.S. dollars or Honduran lempiras to Prospera ZEDE for internal accounting purposes.
Once these obstacles are overcome, entities will be able to report and pay their tax liabilities in Bitcoin directly to Prospera ZEDE. Entities interested in using Bitcoin as their accounting unit need to notify the Prospera Tax Board within 30 days of the relevant tax period.
Próspera ZEDE, established in May 2020 on the northern island of Roatan, designated Bitcoin as legal tender in April 2022, following in the footsteps of Honduras' neighbor El Salvador, which made the cryptocurrency legal tender nationwide in September 2021. Colindres recently highlighted Prospera ZEDE as one of Latin America's "most competitive special regimes," noting its achievement in attracting over $100 million in investment and creating more than 3,000 jobs within three years.
