Tonga set to adopt bitcoin as a legal tender

[Lens1000]

Tonga plans to follow El Salvador's lead and make Bitcoin legal tender.
Another whale is about to fall on the Bitcoinization path. A former politician from Tonga, a Pacific island nation, provided a step-by-step guide to adopting Bitcoin (BTC) as legal cash on Wednesday.

Lord Fusitu'a, a former member of parliament for Tonga, released a bill for Bitcoin to become legal cash in Tonga in a series of tweets. Following El Salvador's lead, the action has the potential to bring over 100,000 Tongans onto the Bitcoin network.

The chairman of the Global Organization of Parliamentarians Against Corruption's Oceania branch discusses the adoption path in his five-point proposal.

The bill is "modeled on and is practically identical to the El Salvador bill," Fusitu'a stated in a follow-up comment.

Before the Tongan put the record straight, the revelation created the seeds for inquiries, predictions, and outright jubilation on Bitcoin Twitter. He enthusiastically responded that BTC becoming legal tender might occur as soon as possible.

Tonga was widely expected to become one of the first countries to accept BTC as legal cash in 2021. Following Lord Fusitu'a's podcast with Bedford-based Bitcoiner Peter McCormack, speculation reached a fever pitch.

The then-member of parliament shared the remittance case for adopting BTC as legal cash during the conversation.

"A 30 percent rise in disposable income. Some (people) will save that extra 30% rather than putting it into the economy and accumulating SATs," he said.
Tonga is a small island nation that relies on remittances from Australia, New Zealand, and the United States. 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.

Furthermore, the Tongan diaspora is extensive, despite the fact that the Tongan population is just six figures. According to the International Organization for Migration, there are 126,000 Tongans residing overseas, with up to 18,000 Tongans in Australia.

 

[Kingsley]

That is a move in the right direction mostly at a time like this, the price of bitcoin has gone down and it is reasonable to acquire bitcoin at this particular time because the prices will appreciate at any time soon. And it will become a huge advantage to their economy. This is how a wise thinking economic planning committee of any government should be thinking.


How I wish my country will adopt the same policies, that is the only way the economy will be channel in the right direction. Crypto currency has come to stay and it has become the new normal.

 

[btaliat]

Though this is just an island, it is still a good move in a good direction. This decision by this island will surely help in the development of bitcoin round the island. I could remember the impact of El Salvador in ensuring most countries in the continent later adopted bitcoin. There is however needs to make sure the citizens are educted along crypto line in order to facilitate peaceful transactions. I could remember how some farmers were accusing the president of El Salvador of forcing the use of bitcoin on them.