Prospera was founded in 2020 and is a privately managed settlement in Honduras with its own political system at a legal, economic and administrative level. The area is subject to the National Government law on the zone for employment and economic development, which tries to promote investment and employment opportunities in mostly uninhabited parts of the country.
"This new form of foreign direct investment, combined with Prospera's services, can help to transform impoverished communities into flowering centers of innovation and prosperity," says a section of the explanation.
municipalities in Honduras can now also issue bonds in Bitcoin in order to attract foreign investments. All companies and local governments, with the exception of those registered in the USA, are entitled to apply, according to the explanation.
bonds are tradable guilt titles for procurement of capital in public and private markets. An issuer sells bonds to procure or borrow money for projects on the primary market to investors. Investors receive a remuneration in the form of fixed -interest coupons, which are typically paid off quarterly, every six months or annually.
Both the sale of bonds and the possibility of using Bitcoin as a legal means of payment are "underpinned by first-class AML and KYC standards" to ensure compliance with the regulations.
The President of El Salvador, Nayib Bukele, announced plans for the construction of a “Bitcoin City” in November, which is largely financed by selling Bitcoin bonds with a kupon of 6.5 % for the first five years. The collected amount of $ 1 billion is divided into the financing and construction of the city, while the other half is used to buy additional bitcoins.
The government of Bukele had planned the introduction of the bond for March, but was postponed to a later date due to unfavorable market conditions and the war in Ukraine.
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The contribution "Bitcoin Now Legal Tender in Special Economic Zone of Honduras" is not a financial advice.
