Romer initially engaged with Honduran officials, but they parted ways due to disputes over how his ideas were carried out. (Romer did not respond to a request for comment.)
Próspera, which plans to launch in 2020, intends to implement ultra-low taxes, outsource companies normally managed by the public sector, establish a “arbitration centre” rather than a courtroom, and charge an annual fee for citizenship (both physical and e-residency) that includes signing a “social contract” that the company hopes will discourage misbehaviour.
When I visited the location in February, one of the few completed structures was a central workstation.
There was no private Próspera police force, but on the front desk was a phone number for Bulldog Safety Worldwide, a private security agency hired by hotels on the island that consider the native police force insufficient.
Employees were accommodated in a pair of two-story structures. The rest of the land was mostly a construction site, albeit a residential tower block is under construction.
A depiction of the longer term Próspera shows homes that appear to be inspired by the shells of the island’s indigenous conch—tender curves in pearly coral, cream, and glass.
The condo complex is separated from the gentle lap of the Caribbean Sea by a stretch of white beach.
The businesses most likely to be attracted below are those seeking to avoid regulation in their home countries— Trey Goff, Próspera’s CEO, emphasises medical innovation, health tourism, and practically every area of the bitcoin trade.
“There’s a lot of crossovers between the crypto trade and what we’re doing,” he adds. “Because they regard themselves as being at the vanguard of monetary innovation, and we must enable that.”
Some people in the IT and crypto industries have already set up shop in the jurisdiction remotely using its e-residency scheme.
Companies can freely deal in any cryptocurrency they like, and 5 have been approved for usage on a government level.
Próspera’s advisors include Oliver Porter, the founding father of Sandy Springs, Georgia—until recently a wholly privatised city in the United States that Próspera’s outsourcing model would imitate.
Próspera claims that Silicon Valley venture capitalists and personal investors have put $50 million into the challenge so far, with a further $100 million fundraising round in the works.
To read our blog on “Robinhood Markets has agreed to buy the cryptocurrency app Ziglu”, click here.
