Following the intense efforts made by El Salvador to create a crypto-friendly state other countries such as Honduras have replicated the move to tap the endless benefits offered by digital assets. In an advanced report the Próspera, a special economic zone situated in Honduras officially accepted Bitcoin as a unit of account.
This implies that Bitcoin will possess monetary value and will be used to determine the market value of goods and services. The announcement came months after Honduras accepted Bitcoin as a legal tender.
Honduras Accepts Bitcoin as a Unit of Account
The Honduras positive outlook for digital assets aims at increasing the use case of digital assets in the region. A statement from the tax commissioner in Próspera Zone for Employment and Economic Development (ZEDE) Jorge Colindres, demonstrated that the new provision aimed at boosting the accessibility of financial services in the region.
The commissioner admitted that legalizing the use of Bitcoin in business will provide investors and customers financial freedom. Mr.Colindres expressed his optimism that Bitcoin will offer financial and monetary freedom to Prospera ZEDE residents.
The official added that the unique features of Bitcoin will enable businesses and individuals from Prospera to seamlessly complete their transactions.
Additionally, the executive noted that accepting Bitcoin as a measure of value will enable the business to improve their bookkeeping and tax reporting. Despite the new provision, the commissioner admitted that the policymakers in Honduras have been formulating rules to create a friendly business environment for digital assets.
Policy Makers in Central America Explore Ways to Boost Financial Inclusivity
Recently the lawmakers in the Central American country drafted the Final BTC Tax Payment Procedure to allow the locals to settle their tax obligations using Bitcoin. However, due to technological challenges and global regulatory concerns Colindres regretted that the Final BTC Tax Payment Procedure will not take effect.
He advised the taxpayers to settle their tax liabilities using the US dollar or the local currency Honduras lempira. The commissioner admitted that the tax regulatory agencies in the region are working around the clock to resolve the matter.
He assured pro crypto citizens that once the issue has been fixed then tax obligations will be settled in Bitcoin. In the meantime, the commissioner urged the businesses interested in using Bitcoin as a unit of account to file a notice with the tax agency within 30 days of the tax period.
Honduras Accepts Bitcoin as a Legal Tender
The executive advised the potential applicant to include an approved crypto exchange such as Kraken, Coinbase, or Binance on their applications. Colindres admitted that the use of Bitcoin as a measure of value aligns with the primary objective of Próspera ZEDE to boost financial inclusivity in the region.
He observed that Próspera ZEDE strives to create a friendly business environment to attract investment in the country. With the ongoing development in Próspera ZEDE Colindres noted that the region has become the most competitive special zone in Latin America.
He confessed that the increase in investment opportunities in Próspera ZEDE created around 3,000 jobs for the local communities. Also, the commissioner argued that since the inception of Próspera ZEDE in 2021 the local and offshore businesses generated over $100 million.
In April 2022 the government of Honduras replicated the El Salvador move to accept Bitcoin as legal tender. The primary objective of legalizing Bitcoin in Honduras was to streamline the integration of crypto and blockchain into the existing financial system. This development aims to improve the transaction speed while reducing the cost of transactions.
