Island of Honduras Adopts Bitcoin as Legal Tender
2022.04.08 18:17
Island of Honduras Adopts Bitcoin as Legal Tender
- The use of bitcoin and other cryptocurrencies as legal tender was legalized on the island of Roatán, which is part of a special economic zone in the Central American country.
- However, Honduran regulators do not take responsibility for crypto transactions.
- The authorities of the economic zone seek to help encourage crypto investments.
A tourist island and a city on the Caribbean coast of Honduras declared a special economic zone, adopted Bitcoin as legal tender, according to information from officials in the area.
The special zone called “Honduras Prospera” includes some parts of the visited island of Roatán, where some 60,000 people reside, as well as the city of La Ceiba located on the Atlantic coast of the Central American country.
“Honduras Prospera” was established in 2020 to attract national and foreign investment, so it enjoys administrative, fiscal and budgetary autonomy, reported Reuters.
“Prospera’s flexible regulatory framework enables crypto innovation and the use of Bitcoin by residents, businesses, and governments,” economic zone authorities said in a statement.
In addition to bitcoin, residents of the island of Roatán and La Ceiba, as well as companies operating in the special zone, will be able to use other cryptocurrencies in their business activities.
On the other hand, local governments and international companies established in the economic zone have the power to issue bitcoin bonds in that jurisdiction.
On The Flipside
- Despite having deposited cryptos as legal tender, the Central Bank of the Central American country clarified that it will not be responsible for this type of transaction.
- The issuer had already advanced an opinion in this regard regarding a query made by the authorities of the special economic zone.
“Any transaction carried out with this type of virtual asset is the responsibility and risk of the person who carries it out,” it said in a statement released in March.
Why You Should Care
- With “Honduras Prospera” there are several jurisdictions in Latin America that accept bitcoin and other cryptocurrencies for commercial activities and the payment of taxes.
- In addition to El Salvador declaring bitcoin legal tender last September, and Cuba legalizing cryptos, several Latin American cities are promoting the use of cryptocurrencies.
The municipalities of Rio de Janeiro in Brazil, La Molina in Peru and El Zonte in El Salvador, are among the most enthusiastic. While in Buenos Aires, Bogotá and Caracas the use of cryptocurrencies is a regular activity with strong growth in recent years.
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