Honduras Introduces Bitcoin as Legitimate Unit of Account

• The Honduras Special Economic Zone has adopted Bitcoin as a unit of account.
• Specific guidelines have been outlined for entities considering implementation.
• Legal entities within the economic zone are mandated to fulfill tax obligations using Bitcoin.

The surging popularity of (Bitcoin BTC) continues to influence nations worldwide, prompting them to consider its integration as a financial instrument. In April 2022, the Honduras special economic zone, Honduras Prospera, adopted Bitcoin as a legal tender, allowing residents, businesses, and governments to use Bitcoin.

Taking a step further, the economic zone has now acknowledged Bitcoin as a legitimate standard for accounting.

An Alternative Measure

On January 7, the Tax Commissioner of the Próspera ZEDE, Jorge Colindres, formally announced the adoption of Bitcoin (BTC) as a legitimate unit of account for legal entities operating within the jurisdiction.

The recognition allows Bitcoin to be utilized as a measure of market value for goods and services in commercial transactions, providing an alternative to the Honduran Lempira and the US dollar.

A 30-day ultimatum has been issued to legal entities interested in adopting BTC as a unit of account, mandating them to file a regulated notice with Próspera’s tax commission within the relevant period.

Colindres emphasized the forthcoming implementation of a ‘Final BTC Tax Payment Procedure.’ Under this procedure, tax liabilities will be determined and reported in BTC, with entities required to make corresponding payments in Bitcoin.

Find out more about hacks and scams in the past year:
Here’s How North Korean Crypto Hackers Stole $600M in 2023

Read more on states embracing Bitcoin as a financial instrument, read here:
Colombian President Welcomes Bitcoin Envoy