In a groundbreaking move, the free private city jurisdiction of Próspera, located in Honduras, has approved Bitcoin (BTC) as a unit of account. This historic decision has positioned Próspera as the first jurisdiction in the world to officially recognise Bitcoin for commercial, tax, and financial transactions. But what exactly is Próspera, and how did it come to embrace the Bitcoin standard?
Próspera: A Glimpse into the Future of Governance
At Próspera, empowerment flourishes through tangible opportunities. Our platform not only generates employment but also drives professional and entrepreneurial development. Each opportunity is a step towards individual and collective empowerment. pic.twitter.com/oL6sa40rJz
Próspera is a charter city on the stunning Roatán island in the Western Caribbean, just off the coast of Honduras. This unique city entered into a charter agreement with Honduras, guaranteeing its residents 50 years of autonomy in governance, with the possibility of renewal. This autonomy empowers Próspera to establish its own civil laws, regulatory agencies, oversight committees, and taxation policies, albeit within certain constraints, such as adhering to the Honduran constitution, international treaties, and criminal law.
Though Próspera currently holds only a portion of Roatán’s land, it has ambitious plans to expand its territory. The revenue generated from taxation and fees imposed on residents and businesses operating within the city will fund this expansion. A remarkable feature of Próspera’s tax system is its simplicity, which includes a 5% individual income tax, a 2.5% sales tax for goods and services, a 1% corporate revenue tax, and a 1% land value tax. These straightforward taxation policies have allowed residents and businesses to transact in the currency of their choice, effectively making Bitcoin a de facto legal tender.
Taking the Leap: Recognising Bitcoin as a Legal Tender
BREAKING: 🇭🇳 Honduras' special economic zone Prospera recognises #Bitcoin as a unit of account!
In May of the previous year, Próspera took a significant step by releasing a resolution formally accepting Bitcoin and other cryptocurrencies as legal tender. To use Bitcoin within Próspera, the amount used must be equivalent to or greater than the value denominated in USD or the Honduran lempira (HNL) at the time of the transaction.
Joel Bomgar, President of Próspera Incorporated, the private company responsible for creating Próspera, emphasised that Bitcoin is vital in achieving economic freedom within the city. He described Próspera as a “free city that has adopted Bitcoin as legal tender,” highlighting that the city’s focus goes beyond just Bitcoin; it’s about embracing freedom.
Próspera’s forward-thinking approach extends to its regulatory authority for issuing Bitcoin bonds. This plan aligns with the ongoing issuance of Bitcoin bonds in El Salvador. Próspera’s status as a charter city allows for swift regulatory adjustments once a framework is established.
The Charter City Model: Collaboration with Nation-States
🌟 2023 has been a year of exceptional achievements for @ProsperaGlobal and @ProsperaZEDE! We're thrilled to share the milestones we've reached together, building a prosperous future for Honduras. pic.twitter.com/M2CVc30Fll
Próspera’s success as a charter city hinges on its capacity to drive innovation within its region while cooperating with its host government, Honduras. Instead of seeking complete independence from nation-states, Próspera offers companies the flexibility of adopting regulatory frameworks that best suit their businesses. Whether it’s a Bitcoin exchange or any other venture, companies can create customised regulatory frameworks within Próspera, providing regulatory certainty often elusive in traditional nation-state frameworks.
The governance structure of Próspera involves appointed council members initially, but as the city’s population grows, elected officials will play a more prominent role. The council operates on a majority-based decision-making system, ensuring policy changes align with the public’s interests. Furthermore, residents can call a referendum to challenge decisions and even initiate significant changes with a 51% majority vote once the population reaches a critical threshold.
The Future of Próspera
BREAKING: @Prosperahn where we have our @AmityAge#Bitcoin Center has just approved Bitcoin as a unit of account. Making it the first jurisdiction in the world to do so💪
In conclusion, Próspera represents a bold and innovative experiment in governance, offering its residents and businesses unprecedented freedom and autonomy. Its adoption of Bitcoin as a legal tender exemplifies the city’s commitment to financial freedom and inclusion. Próspera’s unique blend of regulatory flexibility and adherence to key legal principles positions it as a promising model for the future of governance, offering an alternative to traditional nation-states.
As the world watches this pioneering charter city, it becomes evident that Próspera’s journey is not only about Bitcoin but about embracing the principles of freedom and innovation that define its identity. The possibilities for Próspera are vast, and its recognition of Bitcoin as a unit of account is just the beginning of a transformative journey towards economic and individual empowerment.
