Prospera, libertarian city. Has Bitcoin (BTC) already gone to the tropics?

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Prospera, a town on Roatan Island off the coast of Honduras, is a bitcoin dream. Single Hybrid City Committed to Bitcoin (BTC): Special deals with Honduras promised a bright future. The opportunity to become an e-citizen was possible and attracted many foreign investors. Yes, but here it is: the 2021 change of government puts everything in doubt maybe it’s not that bad

Legal Currency Bitcoin Prospera

A controversial law passed by the Honduran government in 2013 allowed companies to create special economic zones: ZEDE. There are three of them, they may have their own laws, regulations, courts, police, schools and hospitals. Founders prespera took the opportunity to create a fully privatized, low-tax city focused on financial, technological and medical innovation. will bloom it must transfer part of the taxes collected (12%) to Honduras and guarantee the prosperity of its inhabitants. The agreement with Honduras was to guarantee the autonomy of the government for 50 years.

Taxation and electronic citizenship

Prespera has reduced taxes: 5% personal income tax, 2.5% sales tax on goods and services, 1% corporate income tax and 1% real estate tax. That’s all. No other taxes (including capital gains tax) are collected.

What Prspera offers is not just a Bitcoin-friendly (BTC) fiscal environment, but regulatory certainty that allows people to build with Bitcoin without worrying that the regulator will step in and change all the rules. , explains Joel Bomgar, president of Prospera. Company registered in Delaware (USA)

ZEDE

Castro’s predecessor, the former president, actively promoted ZEDE as a means of stimulating economic development. Juan Orlando Herndez. But what were the main reasons for this corrupt president, who was ultimately extradited to the United States in April to stand trial on drug trafficking charges? In a country steeped in poverty and violence, Prosper’s project may seem exciting at first glance.

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Children of Cancer Rock. Photo credit: restofworld.org

Not all is so rosy in Prosper’s realm

prespera it introduced international investors to a libertarian coastal paradise, low taxes and crypto regulation. There are heavyweights among Prspera investors Silicon Valleyhow Peter Thiel (PayPal) or Marco Andresen (via Pronomos Capital, a venture capital fund that invests in autonomous city projects). After successfully raising millions of dollars in donations, work on the island began in 2020.

The ideal of the American libertarians quickly collides with reality: a conflict begins with a neighboring village. cancer rock Home of the historic Garifuna community. rest of the world reports that the Crawfish Rock community lost access to running water in the summer of 2019. Founder prespera above the water until the necessary repairs. But the residents finally got their bills! They say they got paid to the Prospera Foundation (a non-profit organization), weird, weird. And then the tension between the parties only intensifies, the local population fears expropriation: a viral video shows the founder Eric Breeman accompanied by Manu. military police during a speech.

Helping the local community: the end of ZEDE

On April 21, 2022, the newly elected Congress of Honduras unanimously voted to end ZEDE. President Chiomara Castro declared that Honduras was regaining its sovereignty. Venessa Credenas, Crawfish Rock executive, said she wouldn’t mind if Prespera became more of a tourism or economic development site: My advice: pay taxes like everyone else, get permits like everyone else. everyone else and obey the laws and regulations of Honduras like everyone else.

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The showdown begins

Having invested tens of millions in the project, one can imagine that the founders of Prospera do not want to give up. Opposite there are two sovereign states. It’s hard to say whether the founders’ intentions are sincere when they talk about attracting local residents. They oppose some media such as the Guardian which call them crypto-colonizers. They swear that their intentions are sincere and that they want prosperity for all.

This is not the first attempt to create a decentralized space, we have already talked about the bitter failure of Ocean Builders. However, in which virgin country would bitcoins be found without restrictions imposed on all states of the world? Is a libertarian Bitcoin state feasible? The next few years will be instructive as we will see how countries such as El Salvador fare that have adopted bitcoin as their national currency (without taking a libertarian stance).

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