Tonga aims to make Bitcoin legal Tender, copying El Salvador’s bill, former MP says

Tonga aims to make Bitcoin legal Tender, copying El Salvador’s bill, former MP says
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Tonga aims to make Bitcoin legal Tender, copying El Salvador’s bill, former MP says

Tonga Lord Fusitu'a predicts that his country will adopt Bitcoin by November in a judgement that is "nearly identical to the El Salvador bill."

01/15/2022

Another domino has fallen in the path of Bitcoinization. On Wednesday, a former politician from the Pacific Island nation of Tonga posted a step-by-step guide to legalizing Bitcoin (BTC).

Lord Fusitu’a, a former Tonga member of parliament, provided an ETA for Bitcoin becoming legal cash in Tonga in a series of tweets. El Salvador’s strategy might help more than 100,000 Tongans join the Bitcoin network, according to the move.

“Tonga bill is modeled on and is almost identical to the El Salvador bill”

In addition, Fusitu’a said in a follow-up comment that the bill is “modeled on and practically identical to the El Salvador bill.”

Before the Tongan put the record straight, the revelation created the seeds for inquiries, predictions, and outright jubilation on Bitcoin Twitter. Also, he eagerly responded that BTC might become legal tender as early as November or December of this year, saying, “Boom! That’s right, brother! “, as stated in a tweet.

Tonga was widely expected to be one of the next countries to adopt Bitcoin as legal tender in 2021. Following Lord Fusitu’a’s podcast with Bedford-based Bitcoiner Peter McCormack, speculation reached a fever pitch.

Up to 18, 000 Tongans are living in Australia

Tonga is a small island nation that relies on remittances from countries such as Australia, New Zealand, and the United States to keep its economy humming along. According to the International Finance Corporation, Tonga receives more remittances than any other country in the world, accounting for up to 30% of household income, Cointelegraph reported.

Furthermore, even though the Tongan population is only in the six figures, the Tongan diaspora is huge. The International Organization for Migration estimates that 126,000 Tongans live overseas, with up to 18,000 Tongans living in Australia.

One of the key reasons for El Salvador’s adoption of BTC as legal cash was the remittance use case. According to the World Bank, Tonga’s remittances as a percentage of GDP are significantly larger than El Salvador’s, at 39 percent vs. 24 percent.

Fusitu’a is adamant about the BTC future of Tonga

Aside from remittances, the Lord emphasized the domestic benefits of using the open-source protocol. He acknowledged that Tonga might establish a BTC circular economy, calling it “one of the rare cases in which being a thinly populated small island monarchy archipelago is an advantage.”

Tongan officials claimed that internet and also smartphone adoption rates approached 90%. According to the World Bank’s most recent data, which is from 2017, Tonga has a 50% internet penetration rate.

Although bringing the islands online may take some time, Fusitu’a is adamant about his country’s BTC future.

By Elah Mae Ariate Wozinga Staff

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