The 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 cryptocurrencies can now be used as a form of payment for individuals and businesses.
Prospera was founded in 2020 and is a private settlement in Honduras with its own political system at the judicial, economic and administrative levels.
The area is covered by the national government’s Employment and Economic Development Zone Act, which seeks to expand investment and employment opportunities in largely uninhabited parts of the country.
“This new form of foreign direct investment, combined with Prosper’s services, can help transform impoverished communities into thriving centers of innovation,” the statement said.
Honduran municipalities are also allowed to issue bitcoin bonds to attract foreign investment. All companies and local governments, except those registered in the U.S., are eligible to apply.