Honduras Prospera and Madeira adopt Bitcoin
The Bitcoin 2022 Conference in Miami, Florida grinds to a halt today, concluding the three day event which showcased heavy hitters in the crypto-industry and unveiled plans and proposals for the future, though notably absent was the president of El Salvador, Nayib Bukele, who shook the table last year when he announced to the world that his government planned to adopt Bitcoin as the legal tender.
Following this announcement, and despite a flurry of protests by the International Monetary Fund and the World Bank, El Salvador passed legislation in September 2021 and indeed became the world's first country to adopt Bitcoin, a move that led to American Senators introducing a bill titled the Accountability for Cryptocurrency in El Salvador (ACES) Act seeking to understand and mitigate potential risks to the US financial system.
Bukele was expected to appear at this year's Bitcoin Conference again, but he issued a last minute statement demurring his invitation to Bitcoin 2022, citing unforeseen matters in his country which made it impossible to attend the conference.
Nevertheless, there were some announcements of note at the conference, among them the revelation that other jurisdictions were cautiously following El Salvador's lead and promising to shake things up in the world of cryptocurrency. Let's get into it.
Bitcoin is now legal tender in Honduras' special economic zone
Honduras announced that Bitcoin would be accepted as legal tender within its special economic zone, Honduras Próspera.
Established in 2020, Honduras Próspera , is an economic development hub located on the Honduran island of Roatan in the Caribbean sea, some 65 kilometers off the northern coast of Honduras.
The island is touted as an ideal place for investment and future economic growth, and given the zone's fiscal and administrative autonomy, it was deemed to be ideal for enabling crypto innovation and accommodating the use of Bitcoin by the entities established there.
The Legislation
In a statement issued on April 7th, Honduran officials announced that municipalities, local governments, and international firms could now issue Bitcoin Bonds within its jurisdiction with world class KYC and AML standards. This, they believe, positions Próspera as one of the leading jurisdictions in the world for financial innovation and will help to create a new and accessible tool for attracting foreign direct investment and driving economic development in Honduras.
They note: " Unlike most other jurisdictions, transactions in Bitcoin and other cryptocurrencies are not subject to capital gains taxes. Próspera also accepts payment of taxes and fees using Bitcoin and enables residents to build crypto-focused businesses using an optimal regulatory framework of their choice, all undergirded by world-class AML and KYC standards to ensure worldwide regulatory compliance."
Though there were no immediate formal statements from the country's central bank in response to this statement, the central bank previously, in March, issued a statement indicating that it did not accept or back cryptocurrency and that persons investing or trading in the asset did so at their own risk.
Portugal's Madeira to Adopt Bitcoin
Próspera's revelation was not the only statement making waves at Bitcoin 2022. Portugal's autonomous region of Madeira has also announced plans to adopt Bitcoin, and on April 7th, the Madeiran President Miguel Albuquerque made an appearance at Bitcoin 2022 where he reaffirmed his belief in Bitcoin and stated that soon Madeira’s residents would not need to pay personal income taxes when buying or selling Bitcoin.
Mexico Politicians Press for Adoption
There is some speculation in some circles that Mexico may follow next, though I am not convinced that this will happen.
There have been calls by Mexican politicians though, among them Mexican senator Indira Kempis, representing the state of Nuevo Leon, who is pressing the country's president to adopt Bitcoin as legal tender.
What's Next?
Guys, these latest developments, though hardly Earth shattering, represent a growing trend as Bitcoin and other cryptocurrencies gain footing in the world of mainstream finance, particularly in smaller and developing economies.
In the coming months, I suspect that other developing countries may consider introducing legislation and putting more favorable systems in place to accommodate or regulate cryptocurrency transactions and facilitate crypto-related foreign direct investment.
But what do you think of all these developments, my friends?
On the call by Mexican politicians, do you think that Mexico is going to make a major announcement soon embracing cryptocurrency?
Do you think that we will continue to see more favorable announcements by smaller countries and jurisdictions over time?
In terms of Honduras Prospera, do you think that this latest move will soon extend beyond the special economic zone to the rest of the country? And do you think that facilitating Bitcoin transactions can attract foreign direct investment?
I'd love to hear your thoughts as we continue to occupy front row seats and observe shifts and changes in the world of digital finance.
Okay my friends, I'm off in search of another story. Until we meet again, please remember to be safe.
A version of this story was first posted to my account on PublishOx where I write under the pseudonym, I-HODL.
Resources
https://cryptoslate.com/honduras-adopts-bitcoin-as-legal-tender-but-theres-a-catch/
https://cryptobriefing.com/mexico-may-follow-el-salvador-bitcoin-adoption/
https://blockworks.co/bitcoin-now-legal-tender-in-special-economic-zone-of-honduras/
https://www.forbes.com/sites/ninabambysheva/2022/04/07/two-new-territories-are-adopting-bitcoin/
ese es un gobierno que dejo los discursos políticos populistas para tomar acciones concretas par resolver los problemas del país, eso es lo que se necesita personas que tengan visión de futuro.