Honduran special economic zone recognizes Bitcoin as unit of account

The Próspera ZEDE special economic zone in Honduras has recognized Bitcoin as a unit of account, allowing legal entities registered under its authority to use the cryptocurrency for commercial, tax, and financial transactions. The announcement outlines the conditions for adoption, including filing a notice with the Tax Commissioner within 30 days of the relevant tax period and referencing an approved major cryptocurrency exchange. Until the implementation of the Final BTC Tax Payment Procedure, tax liabilities will be determined in reference to BTC for internal accounting purposes but reported to Próspera ZEDE in United States dollars or local currency Lempira. The decision comes after rumors circulated that Honduras was on the verge of approving Bitcoin as legal tender, though the Central Bank of Honduras has previously cautioned against using cryptocurrencies in payment scenarios.