Sunday, May 26, 2024

Honduras special economic zone to make Bitcoin legal tender

The Honduran Special Economic Zone – Prospera ZEDE – has adopted Bitcoin and other cryptocurrencies as legal tender. This special economic zone is on a tourist-centric island on Honduras’ Caribbean coast. It was established in 2020 to encourage investment. The zone’s officials say it has administrative, fiscal, and budgetary autonomy.

In an official statement, the Honduras Prospera said its flexible regulatory framework enables crypto-innovation and the use of Bitcoin by businesses, residents, and governments. It will let municipalities, local governments, and international firms issue Bitcoin Bonds from the area’s jurisdiction. Moreover, the special economic zone covers parts of the picturesque Roatan island and the city of La Ceiba on Honduras’ Atlantic Coast.

But the Central Bank in Honduras said it cannot vouch for cryptocurrency transactions. It highlighted that any transaction carried out with the type of virtual asset falls under the responsibility and risk of the person carrying it out.

Meanwhile, with cryptocurrencies as legal tender, they will not be subject to capital gains tax. People and businesses in Honduras can pay taxes and fees in Bitcoin. In regards to Bitcoin Bond, officials say it will allow the local communities to have direct access to the global crypto market. Authorities believe it will transform impoverished communities into flourishing centers of innovation and prosperity.

Experts say Honduras adopting cryptocurrencies as legal tender will prompt other countries to do the same. El Salvador was the first country in the world to have adopted Bitcoin as legal tender in September of 2021.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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