Prospera Adopts Bitcoin as Unit of Account: Paving the Way for a Modern Economy

The First Steps Towards a Bitcoin-based Economy

The city of Prospera, located in Honduras, has recently made a groundbreaking decision by adopting bitcoin as a unit of account. This move allows companies to not only pay taxes but also determine their financial obligations in bitcoin. Since bitcoin has been recognized as legal tender in Prospera since 2022, this decision could potentially incentivize the development of a circular economy within the city.

The Support for Financial and Monetary Freedom

Jorge Colindres, the General Secretary of Prospera, strongly supports this decision. He believes in the right to financial freedom and monetary freedom, stating that individuals should have the freedom to carry out transactions, maintain their accounting records, and report taxes using the currency of their choice.

Paving the Way for a Modern Economic Ecosystem

By adopting bitcoin as a unit of account, Prospera opens up numerous possibilities for establishing a bitcoin circular economy. The city sees this move as an exciting opportunity for its residents and businesses, as it paves the way for a modern and efficient economic ecosystem in this pioneering city.

Challenges in Implementing Bitcoin-based Tax Payments

Although the adoption of bitcoin as a unit of account is a significant step forward, the payment of taxes with bitcoin is still on hold. This is due to external regulatory issues and technical limitations involving the electronic tax payment system that Prospera has adopted. As a result, tax duties will be declared in bitcoin but reported to authorities in either U.S. dollars or Honduran lempiras.

Prospera's Independent Decision

While there were rumors in the past about Honduras adopting bitcoin as legal tender in 2022, the central bank of the country quickly dispelled these rumors. They stated that bitcoin was not a regulated currency and did not have the status of legal tender. The central bank also warned about the dangers of cryptocurrencies due to their increasing popularity.

However, Prospera has the authority to make independent decisions under the Development and Employment Zone (ZEDE) designation. This autonomy has sparked criticism from some sectors of Honduran society, who view these zones as a violation of the country's constitution and sovereignty over the occupied territories.

Looking Towards the Future

The adoption of bitcoin as a unit of account in Prospera is a significant development in the world of cryptocurrencies and the economy in Latin America. It will be interesting to see how this decision unfolds and what impact it will have on the city's economic landscape. To stay updated on the latest developments in crypto and the economy in Latin America, be sure to sign up for our Latam newsletter. We look forward to hearing your thoughts on this groundbreaking decision in the comments section below.

Frequently Asked Questions

Which precious metal is best to invest in?

Gold is an investment that offers high returns on its capital. It protects against inflation, as well as other risks. As people become worried about inflation, the value of gold tends rise.

It’s a good idea to purchase gold futures. These contracts ensure that you receive a set amount of gold at a fixed rate.

But gold futures may not be right for everyone. Some prefer to have physical gold.

They can also trade their gold easily with others. They can also make a profit by selling their gold at any time they desire.

Many people prefer not to pay taxes on their gold. They purchase gold directly from governments to achieve this.

You will need to visit several post offices to complete this process. You will first need to convert any existing gold in coins or bars.

Finally, you’ll need to get a stamp to put on the bars or coins. Finally, you send them to the US Mint. They will then melt down the bars and coins to create new coins.

These bars and coins are stamped with the original stamps. This means they are legal tender.

If you buy gold from the US Mint directly, you won’t have to pay tax.

So, which precious metal would you like to invest in?

What are the pros & con’s of a golden IRA?

For those who don’t have the ability to access traditional banking services but want to diversify their portfolios, a gold IRA can be a great investment option. It allows you to invest freely in precious metals, such as gold, silver and platinum until they are withdrawn.

There is a downside to this: if you withdraw your earnings early, you’ll be subject to normal income tax. However, these funds are kept outside the country and cannot be seized by creditors if you default.

A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.

What Precious Metals Can You Invest in for Retirement?

Understanding what you have now saved and where you are currently saving money is the first step in retirement planning. You can start by making a list of all your assets. This includes all savings accounts and stocks, bonds or mutual funds. It also should include certificates of Deposit (CDs), life insurance policies. Annuities, 401k plans, real-estate investments, and other assets like precious metals. Take all of these items and add them together to find how much you have left for investment.

If you are less than 59 1/2 years of age, you may be interested in opening a Roth IRA. A Roth IRA is not able to allow contributions to be deducted from your taxable earnings, but a traditional IRA can. However, you will not be able take tax deductions on future earnings.

If you decide that you need more money you’ll need another investment account. Start with a regular broker account.

What is a Precious Metal IRA and How Can You Benefit From It?

Precious Metals are a great way to invest in retirement funds. They have held their value since biblical times. The best way to protect yourself from inflation is to invest in precious metallics such as platinum, silver and gold.

Certain countries permit citizens to hold their money in foreign currencies. You can buy gold bars in Canada, and then keep them at the home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.

This is a quick and easy way of investing in precious metals. It is particularly useful for those who live outside North America.

How can I choose an IRA?

Understanding your account type is the first step to finding the best IRA. This includes whether your goal is to open a Roth IRA (or a traditional IRA). You will also need to know how much you can invest.

The next step is determining which provider fits your situation best. Some providers offer both accounts, while others specialize in just one type.

Consider the fees that come with each option. Fees may vary from one provider to another and could include annual maintenance fees as well. For example, some providers charge a monthly fee based on the number of shares you own. Others may only charge one quarter.

How much of your portfolio should you hold in precious metals

To protect yourself from inflation, investing in physical metals is the best option. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. The value of your investment increases with rising prices.

Any gains you make from investments that you hold onto for at least five year will be tax-free. Capital gains taxes will apply if you sell the investments within this time period. You can learn more about gold coins by visiting our website.

Are gold and silver IRAs a good idea?

This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. There are also many other options. If you have any questions regarding these types of investments, please feel free to contact us anytime. We’re always glad to help!

Statistics

The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
Silver must be 99.9% pure • (forbes.com)
Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)

External Links

How To

How to Buy Gold To Your Gold IRA

Precious metal can be used to refer to gold, silver or platinum as well as osmium and ruthenium. It refers only to elements with atomic number 79-110 (excluding helium). These elements are considered valuable because they are rare and beautiful. Precious metals include gold and silver. Precious metals are used in jewelry, money, industrial goods and art objects.

The price of gold fluctuates daily due to supply and demand. There has been a significant demand for precious metals over the past decade as investors look for safe havens in unstable economies. Prices have risen significantly due to this increased demand. However, some are hesitant to invest in precious metals because of the rising costs of production.

Because it is rare and long-lasting, gold makes a great investment. Gold never loses its value, unlike other investments. You can also sell or buy gold without paying any taxes. There are two methods to invest gold. You can buy bars and gold coins, or invest into gold futures contracts.

Instant liquidity is provided by physical gold coins and bars. They’re easy to trade and store. However, they are not very inflation-proof. If you want to protect yourself from rising prices, consider purchasing gold bullion. Bullion is physical, or pure gold. Some billions come in one-ounce pieces, while others come in larger sizes like kilo bars. Bullion is usually stored in vaults protected from theft and fire.

If you prefer owning shares of gold rather than holding actual gold, you should consider buying gold futures. Futures allow you to speculate as to how the gold price will change. You can expose yourself to the price of gold by buying gold futures without having to own the physical commodity.

A gold contract could be purchased if you wanted to speculate on the future price of gold. My position after the contract expires will be either “long” (or “short”) A long contract is one in which I believe that the price of gold will rise. I’m willing now to pay someone else money, but I promise I’ll get more money at the end. A shorter contract would mean that I believe the gold price will fall. In exchange for making less money in the future, I am willing to accept the money now.

I will receive the amount of gold in the contract, plus interest, when the contract ends. This gives me exposure to the gold price, but I don’t have to own it.

Precious metals can be a great investment because they are very hard to counterfeit. Paper currencies can be easily faked by printing new bills. Precious metals are not easy to counterfeit. Because of this, precious metals have traditionally held their value well over time.

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By: Sergio Goschenko
Title: Prospera Adopts Bitcoin as Unit of Account: Paving the Way for a Modern Economy
Sourced From: news.bitcoin.com/honduran-city-of-prospera-adopts-bitcoin-as-unit-of-account/
Published Date: Tue, 09 Jan 2024 14:30:46 +0000