By Gustavo Palencia

TEGUCIGALPA – Officials from the special economic zone located on a tourist-focused island off Honduras’ Caribbean Coast have declared that bitcoin and other cryptocurrencies are legal tender.

The special area, known as “Honduras Prospera”, was created in 2020 to encourage investments. It has budgetary, administrative and fiscal autonomy.

Honduras Prospera stated in a statement that “Prospera’s flexible regulatory framework allows crypto-innovation”

Additionally, the economic zone will allow municipalities and local governments to issue Bitcoin bonds within its jurisdiction.

Honduras Prospera includes parts of Roatan, a picturesque island on the Atlantic Coast of Honduras.

El Salvador, a neighboring country, adopted bitcoin legal tender in September. It was the first country to do this, but it was slow and hampered by public doubts.

Honduras’ Central Bank stated it could not vouch in cryptocurrency transactions.

In a statement sent to customers on Thursday, the bank stated that transactions made with virtual assets fall under the control and risk of their owners.