Prospera, a jurisdiction of the Honduras Island Roatán, and Madeira, Portugal are both adopting Bitcoin as de facto legal tender.
According to a report by Forbes, residents from both territories will not have to pay capital gains tax on Bitcoin.
Prospera’s president Joel Bomgar was joined by former Chief Strategy Officer of Blockstream Samson Mow announcing that “residents won’t have to pay capital gains tax on bitcoin and will be able to pay taxes and fees to the jurisdiction using the cryptocurrency.”
Alongside Mow and Bomgar, Miguel Alburquerque who is the president of Madeira’s Regional Government joined the pair to announce the conditions for Maderia’s adoption. Alburquerque announced that residents of Madeira won’t need to pay personal income taxes when buying and selling Bitcoin.
Following In The Steps Of El Salvador
The way to legalize Bitcoin as legal tender was paved by El Salvador, which officially adopted Bitcoin as legal tender in September of 2021. Prospera and Madeira are the first two territories since El Salvador to adopt Bitcoin as legal tender.
The Distributed reported in March that Lugano, Switzerland was set to make Bitcoin and Tether de facto legal tender. This is expected to be up and running within the next few months. These two territories have launched it before Lugano which is why they are the official two territories to adopt Bitcoin since El Salvador.
The launch of the first bitcoin bond, designed by Mow for El Salvador, was postponed recently. This was due to ‘unfavorable market conditions.’
Starting from today, Prospera has enabled the “other municipalities in Honduras or other companies or political subdivisions outside of the United States to float bitcoin bonds from within the Prospera jurisdiction,” according to Bomgar, adding that this will be “an incredible way to bring foreign direct investments to the part of the world that needs it most,”
I believe in the future, and I believe in bitcoin. Our government will continue to work to create a fantastic environment for bitcoin in Madeira.
Miguel Alburquerque
