Bitcoin Becomes Unit of Account in Prospera, Honduras

Prospera, a Honduran city, has recently embraced Bitcoin, using it as a unit of account. This groundbreaking decision allows for tax payments and financial obligations to be calculated in Bitcoin. This move is significant, especially since Bitcoin was recognized as legal tender in the city from 2022.

Jorge Colindres, the General Secretary of Prospera, expressed strong support for this initiative. He emphasized the city’s commitment to financial and monetary freedom, stating, “At Prospera, we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice.”

The adoption of Bitcoin as a unit of account opens the door to a potential Bitcoin-centric economy within Prospera. The city has the goal of establishing a modern, efficient economic ecosystem, leveraging Bitcoin to facilitate this.

However, there are hurdles in implementing Bitcoin for tax payments. Due to regulatory and technical issues with the electronic tax payment system, taxes, though calculated in Bitcoin, are still reported in U.S. dollars or Honduran lempiras.

Previously, there were speculations about Honduras adopting Bitcoin as legal tender in 2022. The country’s central bank refuted these rumors, clarifying that Bitcoin was not regulated and did not have legal tender status. The bank also issued warnings about the risks associated with cryptocurrencies.

Prospera operates under the Development and Employment Zone (ZEDE) designation, granting it certain self-regulatory powers. This autonomy allows Prospera to make independent decisions, such as adopting Bitcoin. However, this has led to controversy, with some in Honduras viewing these zones as infringing on the country’s constitution and sovereignty.