BTC Officially Recognized As A Unit Of Account In Honduras Special Zone

In under two years since adopting Bitcoin (BTC) as an accepted legal form of payment, a special economic zone situated in Roatan, Honduras, has officially acknowledged BTC as a unit of account. This designation allows the flagship crypto to be utilized as a measure for determining the market value of goods and services.

The initiative, led by Jorge Colindres, the acting manager and tax commissioner of the regional ZEDE (Zone for Employment and Economic Development) on January 5th, aims to provide increased financial autonomy to individuals and businesses operating within the region.

Still A Ways To Go

Colindres expressed the belief in the right to financial and monetary freedom, emphasizing the freedom for individuals to conduct transactions, manage their accounts, and report taxes in their chosen currency. This development permits BTC to serve as a monetary unit for evaluating the market value of various goods and services within this specific zone.

However, the implementation of the Final BTC Tax Payment Procedure faces various contemporary challenges due to technological limitations in the eGovernance system and external regulatory issues. Presently, tax obligations for entities opting for Bitcoin are determined in BTC for internal accounting but are reported to ZEDE in United States Dollars or the Honduras Lempira.

A Bright Future

Upon resolution of these issues, entities will report and settle tax liabilities to the local ZEDE in BTC. Those wishing to adopt BTC as their unit of account must also submit a notice to the regional tax commission within 30 days of the relevant tax period, referencing an approved cryptocurrency exchange like Coinbase or Kraken.

El Salvador decided to recognize Bitcoin as legal tender nationwide back in September 2021. Colindres highlighted that the aforementioned ZEDE is in fact one of the most competitive special regimes in Latin America, boasting over $100 million in three years and the creation of over 3,000 jobs across the country.