Próspera ZEDE, the special economic zone of Honduras, has officially recognized Bitcoin (BTC) as a unit of account. This move effectively recognizes the legitimacy of cryptocurrency in various commercial, tax and financial transactions.
The announcement, published on January 5 by Jorge Colindres, the zone's acting manager and tax commissioner, outlined the conditions under which legal entities can adopt Bitcoin as a unit of account.
“Próspera ZEDE recognizes the right of resident legal entities organized or registered under the authority of the Prospero Entity Registry Statute to use Bitcoin (“BTC”) as their respective unit of account in the sense of the unit of currency or unit of measurement value, according to which their accounts are maintained and values are reported,” the statement said.
For example, companies interested in adopting Bitcoin as a unit of account must file a notice with the Tax Commissioner within thirty days of the relevant tax period. The notice should point to an approved major cryptocurrency exchange such as Kraken or Coinbase.
Until the final BTC tax payment procedure is implemented, the tax liabilities of Bitcoin-electing companies will be determined for internal accounting purposes in relation to BTC, but will be reported to Próspera ZEDE in US dollars or the local currency Lempira.
After implementing the final BTC tax payment procedure, tax liabilities will be reported in BTC and companies will pay the corresponding amount in Bitcoin to Próspera ZEDE.
The statement also included an approved form that companies can use for their Bitcoin election. Próspera General Service Provider ZEDE will publish the BTC election notification form templates and update the eProspera eGovernance platform to include the corresponding data entry and filing.
Honduras has tried to make Bitcoin legal in the past
It is worth noting that the economic zone's decision came after rumors previously circulated that Honduras was close to allowing Bitcoin as legal tender. There has been speculation that the country could follow in El Salvador's footsteps and recognize the legality of Bitcoin.
Interestingly, in 2022, the Central Bank of Honduras released a statement refuting the news that the country had declared Bitcoin legal. In the statement, the institution warned against using cryptocurrencies such as Bitcoin in payment scenarios, highlighting the lack of legal backing for such transactions.
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