Honduran Bitcoin Zone Prospera Hit by Court Ruling That Voids ZEDE Law

Published at 2026-02-16 11:45:16

Honduras’ experimental Zone for Employment and Economic Development known as Prospera — notable for recognizing bitcoin as legal tender — was thrown into doubt after the nation’s highest court ruled the ZEDE legal framework unconstitutional. The judgment undermines the statutory foundation on which Prospera was created and could nullify agreements, land grants and governance arrangements tied to the zone.

The ruling matters beyond one site: it signals heightened legal risk for crypto-friendly enclaves and could slow private investment and on‑the‑ground bitcoin use in Honduras. Residents, businesses and foreign backers now face legal uncertainty while lawmakers and courts decide next steps; market participants and policymakers will be watching for legislative fixes, appeals or negotiated transitions that could determine whether Prospera survives in any form.

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