A special economic zone (SEZ) in Honduras declares it will adopt Bitcoin as a de facto currency and accept payments from residents within its territory. The report adds that the economic zone, Honduras Prospera ZEDE, would permit individual and corporate bodies to issue BTC bonds from the zone.
The Propspera ZEDE economic zone based in Honduras announced that it plans to adopt Bitcoin as a legal tender within its jurisdiction. The only more exciting news that surpasses Honduras’ recent announcement is El Salvador’s declared plan to adopt Bitcoin as a legal tender.
Details of the Report
According to the press report from the economic zone’s leadership, the ZEDE would adopt other cryptocurrencies apart from Bitcoin later. The SEZ is based on an island in the Central American country, and expectations are heightening about the prospects of its recent announcement.
The announcement comes as a huge surprise to the cryptocurrency world. The surprise, however, relates more to the time of the announcement than the details of the press release. That’s because most crypto advocates have upheld the belief that digital currencies would eventually become fully integrated into human communities.
Asides the adoption of BTC as legal tender in Prospera ZEDE, the report also includes other welcoming developments with respect to cryptocurrency. For instance, local governments, and foreign organizations would be permitted to issue bonds in BTC from the trade area. That, the leadership says, would attract foreign investment and help develop the zone’s economy.
Moreover, individuals and corporate organizations won’t have to pay capital gains tax when they utilize Bitcoin in making payments. The trade area also allows its residents to pay taxes, levies, and other payments required by the SEZ in BTC.
Regarding the Bitcoin bonds, the leadership of the Honduras’ SEZ expects to give its residents access to the international digital assets’ market. That, it believes, could help significantly develop the financial situation of local municipalities towards better economic indices.
BTC Increases Reach
This announcement from the Central American nation adds to the pile of similar announcements and speculations across national governments favoring virtual currencies. Although the latest announcement from Honduras only applies to a trade area, it’s still strong enough to influence other countries to follow its move.
El Salvador’s leader is one of the most vocal national leaders supporting the global cryptocurrency trend. The country’s president, who addressed attendees at the Bitcoin 2021 conference, has announced his intention to adopt Bitcoin as a national legal tender.
However, the announcement about El Salvador’s plans hasn’t failed to receive its fair share of both local and international criticisms. There’s some apprehension within the country, and the country’s central bank has warned citizens against the risks of virtual assets.
In a more recent development, a Mexican legislator announced plans to rally support towards adopting BTC as a Mexican legal tender. Addressing attendees at the ongoing Bitcoin 2022 conference, the Senator said his country’s parliament would receive a Bitcoin bill within a couple of months.
Perhaps, Mexico might just be the next possible adopter of BTC as a legal tender. The Bitcoin 2022 conference took place in Miami, Florida, between the 6th to the 9th of April.