Honduran special economic zone adopts Bitcoin as legal tender

A special economic zone on a tourist-centric island on Honduras' Caribbean coast has officially adopted Bitcoin as well as other cryptocurrencies as legal tender.

The special zone is called "Honduras Prospera", and was established in 2020 to attract investments. The zone has administrative, fiscal, and budgetary autonomy.

"Prospera's flexible regulatory framework enables crypto-innovation and the use of Bitcoin by residents, businesses, and governments", Honduras Prospera said in a statement.

It will also be possible for municipalities, local governments and international firms to issue Bitcoin bonds from the area's jurisdiction.

Neighboring country El Salvador was the first country in the world to adopt Bitcoin as legal tender in September 2021. The roll-out was bumpy and mined in public skepticism.