Bitcoin Now Legal Tender in Special Economic Zone of Honduras

The special economic zone of Prospera is attempting to boost economic activity and attract foreign investment through crypto

article-image

Aerial Shot of Beach Resort in Roatan Bay, Honduras | Credit: Shutterstock

share

key takeaways

  • A special economic zone on the island of Roatan has legalized bitcoin and crypto as a form of money
  • Residents and foreign businesses can now also pay taxes and fees as well as issue bonds utilizing the asset class

A Caribbean island off the northern coast of Honduras has officially recognized bitcoin as legal tender.

In the special economic zone located on the island of Roatan, known as Prospera, bitcoin and other cryptos can now be used as a form of payment for individuals and businesses, according to a Thursday statement.

The move follows the lead of neighboring country El Salvador, which sanctioned bitcoin as legal tender on Sept. 7. El Salvador’s case, a world-first, has drawn the ire of policymakers in the US and has prompted legislation in the House and Senate, which seek to study the potential risks to the world’s largest economy.

Prospera, established in 2020, is a privately-managed settlement in Honduras with its own political system at the judicial, economic and administrative levels. The area is subject to the national government’s Zone for Employment and Economic Development law which is attempting to boost investment and employment opportunities in largely uninhabited parts of the country.

“This new form of foreign direct investment, combined with Prospera’s services, can help transform impoverished communities into flourishing centers of innovation and prosperity,” a section of the statement reads.

Municipalities in Honduras are also now allowed to issue bonds in bitcoin to entice foreign investment. All companies and local governments, except those registered within the US, are eligible to apply, the statement reads.

Bonds are tradable debt instruments designed to raise capital in public and private markets. An issuer sells bonds to raise or borrow money for projects on the primary market to investors. Investors receive compensation in the form of fixed-rate coupons which are typically paid out on a quarterly, bi-annually or annual basis.

Both the sale of bonds and the ability to use bitcoin as legal tender will be “undergirded by world-class anti-money laundering (AML) and know-your-customer (KYC) standards” to ensure regulatory compliance.

El Salvador’s President Nayib Bukele announced plans in November to build a “Bitcoin City” funded largely by the sale of bitcoin bonds with a coupon rate of 6.5% for the first five years. The amount of $1 billion raised will be split into funding and building the city while the other half will be used to purchase additional bitcoin.

Bukele’s government had scheduled the bond launch for March, but that has since been postponed due to unfavorable market conditions and the war in Ukraine.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025

article-image

“Why put a target out there that’s really speculative, not knowing exactly where this environment is going to go?” CarMax CEO Bill Nash said

article-image

While the head of Base may support legal sex work, Coinbase policies prohibit said workers from using its exchange.

article-image

EVM bottlenecks fundamentally hold back Ethereum’s scalability

article-image

In 2011, WikiLeaks faced a financial blockade imposed by the US government. It was Bitcoin’s first major test.