Bitcoin and other cryptocurrencies have become legal tender in a special economic zone on an island off Honduras’ Caribbean coast, according to officials.
The tourist-focused island, dubbed “Honduras Prospera,” was established in 2020 to boost investment. It has administrative, fiscal, and budgetary independence.
Honduras Prospera said in a statement that “Prospera’s flexible regulatory framework enables crypto-innovation and Bitcoin use by residents, businesses, and governments,” Honduras Prospera said in a statement.
According to Reuters, the economic zone will also allow municipalities, local governments, and global corporations to issue bitcoin bonds under the jurisdiction of the zone.
Honduras Prospera includes the picturesque island of Roatan as well as the city of La Ceiba on Honduras Atlantic Coast.
Meanwhile, El Salvador, a neighbouring country, made bitcoin legal tender in September of last year. El Salvador became the first country to do so, despite the fact that the implementation was rocky and people were sceptical.
The Central Bank of Honduras, on the other hand, does not endorse cryptocurrency transactions. In a March statement, the bank stated that “any transaction carried out with this type of virtual asset is the responsibility and risk of the person carrying it out.”
According to the report, the crypto ATM, dubbed “la bitcoinera” in Honduras, allows users to purchase Bitcoin and Ethereum using “Honduran lempira,” the country’s local currency. To purchase cryptocurrencies via ATM, crypto users will need to scan official identification and enter personal information such as phone numbers.
