More On: Bitcoin
Following El Salvador's official recognition of bitcoin in September 2021, Prospera, a jurisdiction on the Roatán island off the northern coast of Honduras, and Madeira, an autonomous region in Portugal, have adopted bitcoin as de facto legal cash.
The announcements made today took place on the same stage where Salvadoran President Nayib Bukele made history in April. Bukele was also supposed to speak at the conference later this afternoon, but he canceled his appearance after his government announced a state of emergency in the wake of a series of gang-related murders.
According to Joel Bomgar, Prospera's president, and Samson Mow, former Chief Strategy Officer of bitcoin infrastructure company Blockstream, people in Prospera will not have to pay capital gains tax on bitcoin and would be able to pay taxes and fees to the jurisdiction using the cryptocurrency (He has recently left the firm to focus on nation-state bitcoin adoption).
Prospera will now allow "other municipalities in Honduras, as well as other firms or political subdivisions outside of the United States, to float bitcoin bonds from within the Prospera jurisdiction," according to Bomgar. He went on to say that this is "an excellent method to bring foreign direct investment to the portion of the world that most needs it." Due to 'unfavorable market conditions,' the introduction of the first bitcoin bond, developed by Mow for El Salvador, has been postponed.
Bomgar and Mow were joined by Miguel Albuquerque, president of the Regional Government of Madeira in Portugal, who announced that residents of Madeira will not have to pay personal income taxes when buying or selling bitcoin, and Indira Kempis, a Mexican senator representing the state of Nuevo León, who called on the country's president to immediately adopt bitcoin as legal tender and proposed new monetary legislation, though no further details were provided.
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