Bitcoin-friendly Próspera strikes back at controversy in The Guardian

by · July 6, 2022

The management of the crypto – friendly charter city of Próspera in Honduras has backed down on reports that they are facing setbacks from residents of the neighboring community of Crawfish Rock over the expansion plans.

An article from The Guardian on July 5 reported on the special economic zone, designated as an island paradise with low taxes / tax liability, luxury housing and crypto-friendly regulation has seen setbacks by some residents of the Crawfish Rock community.

Some residents are reportedly worried about being evicted from their homes due to Prospera’s potential expansion plans, with the article describing the project headquarters as sitting “in the middle of a landscape scarred by a bulldozer and deep holes dug for the foundation for the next construction phase.”

It’s another salvo to the Bitcoin – loving city, which has been at loggerheads with the Honduran government since repealing the Employment and Economic Development Zone (ZEDEs) Act in April, which was a key piece of legislation that would allow it to function. as a self-governing fully autonomous zone.

However, a long Twitter thread from Próspera and an article by Advocate General Nick Dranias on July 6 claimed that articles such as the one from The Guardian are just another example of a “great deal of lies and misinformation from the mainstream media”.

“Not surprisingly, given the effective nature of our project, we have been confronted with a flurry of lies and misinformation from the mainstream media.”

Drani outlines three key myths that are allegedly spread by mainstream media, including:

“Myth # 1: The Próspera team did not socialize the project sufficiently before the launch.

Myth # 2: Próspera is an ideological / crypto / libertarian project.

Myth # 3: In Honduras, Próspera ZEDE expropriated land from the locals. “

A Próspera representative told Cointelegraph that in general, society’s response has been positive with the exception of a select few:

“We have a fantastic relationship with the local community, are the largest employer in the community, and generally work well with them. In fact, only two members of society dislike us – the media only always speaks to just the two people. “

Próspera Global also claims on Twitter that the supposed bulldozer-scratched countries are construction sites for environmentally friendly “low-cost housing available to all islanders”, with construction jobs as a source of employment for the local community.

Próspera has been locked in a legal conflict with the government since President Castro repealed the ZEDE law in April, which would give the project 12 months to register under another framework as a “free zone” that would offer tax cuts but not allow itself . control set.

In early June, Próspera submitted a request for government consultations under the Investment Chapter of the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR), in an attempt to maintain its ZEDE status under the legal terms of the agreement. initial agreement.

Related: Bitcoin exchange is increasing as “not your keys, not your crypto” is back in vogue

Honduras Próspera Inc. has maintained that the registration as a ZEDE has a valid “legal stability” for at least 50 years due to the legal framework of the agreement it signed with the government back in 2017. In a blog post from June 4, the company noted that:

“Failure to maintain these obligations would constitute a violation of international and Honduran law, as well as the unfair and unfair treatment of Honduras’ Próspera. In addition, it will send a message to the world that no foreign investment in Honduras is safe. “

The company stated that it hopes to avoid an “international investor-state arbitration” and hopes that the government will act in “good faith” to the original ZEDE agreement. The company plans to “invest hundreds of millions of dollars more in the coming years,” and in April Honduras Próspera Inc. raised $ 60 million to invest in the project despite the ZEDE repeal.

The representative added that the government “has not yet formally responded to our request for official consultation.”

Próspera is a privately run settlement in Honduras managed by Honduras Próspera Inc. The original size of Próspera Village is 58 acres and contains areas for headquarters, housing and areas for businesses to establish shop. The size can grow over time if local landowners agree to integrate their properties in the ZEDE territory.