• 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.
• But, Honduran regulators aren’t responsible for crypto transactions.
• Authorities in the economic zone want to encourage crypto investment.

Officials in the region have informed us that a tourist area and city along the Caribbean coast of Honduras has been declared a special economic territory. The legal tender adopted was the name “Tourist Island”

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.

Economic zone officials stated in a statement that “Prospera’s flexible regulatory framework allows crypto innovation and use of Bitcoin for residents, businesses and governments.”
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.

Local governments as well as international corporations based in the area have the ability to issue Bitcoin bonds.

Flipside

• Although cryptos have been deposited, the Central Bank of Central American Country clarified that they will not be responsible.
• This was a response to a question that had been raised by authorities from the special economic area.

In a March release, it stated in detail that any transaction using virtual assets is at the risk and responsibility of the party who makes it.

What You Need to Care About

• With “Honduras Prospera” there are several jurisdictions in Latin America that accept bitcoin and other cryptocurrencies for commercial activities and the payment of taxes.
• El Salvador made bitcoin legal in September last year, while Cuba legalized cryptocurrency. Many Latin American cities promote the use of cryptos.

Rio de Janeiro, La Molina, Peru, and El Zonte, El Salvador are some of the most passionate. While in Buenos Aires, Bogotá and Caracas the use of cryptocurrencies is a regular activity with strong growth in recent years.

Continue reading on DailyCoin