The Honduran Constitution’s hub for sustainable economic development, Próspera ZEDE, announced that Bitcoin and other cryptocurrencies effectively operate as legal tender within its jurisdiction.
In Brief:
- Local authorities and international firms can issue Bitcoin bonds in the Próspera jurisdiction.
- As announced at the Bitcoin Conference, Portugal region Madeira will also make Bitcoin a legal tender.
- Mexican Senator Indira Kempis floated the possibility of having the same legislation as the two countries.
The announcement was made by Joel Bomgar, President of the crypto-friendly SEZ Honduras Próspera located on the tourist-centric Roatan island shared during the Bitcoin Conference in Miami.
According to Bomgar:
- Municipalities, local governments, and international firms can issue Bitcoin Bonds following KYC and AML laws in order to attract FDI in the jurisdiction.
- Individuals and businesses can use Bitcoin as a form of payment without incurring capital gains taxes.
- It will accept BTC for tax and fee payments and will allow residents to initiate crypto-focused businesses.
Further, accredited investors can also invest directly in Honduras Prospera Inc. (a Delaware Corp.) and receive securitized equity tokens.
Madeira, a Portuguese autonomous region, will also make Bitcoin a legal tender.
During the same event, Miguel Albuquerque, President of the Madeira Regional Government, stated, “I believe in the future and I believe in bitcoin. Individuals in Madeira are not subject to capital gains taxes when buying and selling Bitcoin,” while also claiming that the region’s free trade zone’s corporate tax rate of 5% is one of the lowest in Europe.
Indira Kempis, a Mexican senator, announced plans at the BTC Conference to propose legislation to recognize bitcoin as legal tender in her country.
“I think now is the pivotal time in human history and we need to move things forward fast. We want to sit down with the president to talk about making bitcoin legal tender in Mexico.”
With many countries accepting the cryptocurrency adoption, Honduras’ neighboring country, El Salvador became the first country to adopt bitcoin as a legal tender last year.