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

Decoding crypto and the markets. Daily, with Byron Gilliam.

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.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy