Bitcoin will become legal tender in the Honduras Próspera ZEDE special economic zone, allowing it to be used for payments within the territory. The SEZ will also allow entities to issue bitcoin bonds.
In a press statement, the Próspera ZEDE economic zone in Honduras stated that bitcoin will become the de facto currency. This is a significant step, rivaled only by El Salvador’s decision to declare bitcoin legal tender, albeit limited to the economic zone. BTC, as well as other cryptocurrencies, will essentially serve as legal money in the Próspera ZEDE zone.
The special economic zone (SEZ) is located in the Western Caribbean on the island of Roatán, as well as in Honduras’ Northern Corridor. The announcement comes as a shock, and it will undoubtedly spark debate in other countries – depending on how this move plays out, of course.
As stated in the press release, there are further good developments. The SEZ will allow municipalities, local governments, and multinational corporations to issue Bitcoin bonds, which is yet another significant development for the asset. This is in the hopes of attracting foreign direct investment and boosting economic growth.
Individuals and businesses can now use bitcoin as payment, and bitcoin. Then, and other cryptocurrencies transactions will no longer be subject to capital gains tax. BTC can also be used to pay taxes and fees.
Officials anticipate that the Bitcoin Bond would give local communities direct access to the global cryptocurrency market. As a result, they believe it has the potential to…
“assist in the transformation of disadvantaged areas into thriving centers of innovation and prosperity.”
Many countries are gaining increasingly interested in Bitcoin.
While this step is under limit to the authority of the Próspera ZEDE economic zone. So, it is still a significant one that may prompt other governments to consider similar measures.
This is a test that could demonstrate the numerous advantages of bitcoin and other cryptocurrencies. In addition, the country has its own cryptocurrency ATMs.
The country’s central bank has issued repeated remarks warning investors about cryptocurrencies. Thereby, indicating that the country is concerned. Crypto transactions are risky, according to the bank, and the individual or group is responsible for the consequences.
However, the reaction of the rest of the globe may not be entirely positive. El Salvador has taken a lot of heat for making bitcoin legal tender, and it continues to do so.
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