Tonga to Follow El Salvador in Bitcoin Adoption
The second country after El Salvador that might accept Bitcoin as legal tender could be the small island nation of Tonga. A former lawmaker of the nation, Lord Fusitu’a has confirmed on his Twitter, that a bill is in the works that could bring Bitcoin into the everyday lives of the Tonga people.
1. Sept/Oct Bill goes to Parliament. Passed.— Lord Fusitu'a (@LordFusitua) January 12, 2022
2. Sent to Palace Office for submission to His Majesty for Royal Assent.
3.<A month - HM as advised by Privy Council assents to Bill.
4. 2-3 Weeks Gazetted by Govt activation date set.
4. On activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN
He presented a five-step process of adopting BTC as legal tender. He further revealed that the bill should be “modeled on and is almost identical to the El Salvador bill.”
This process should greatly benefit the island people who rely heavily on remittances. Accepting Bitcoin would greatly lower the fees one has to pay when sending money home.
According to the International Finance Corporation, “four out of five Tongan households receive remittances from abroad, providing a major source of income, equivalent to about 30 percent of household consumption.”
Other than remittances, the country should greatly benefit from Bitcoin’s adoption when it comes to its economy alone. Fusitu’a said that this is “one of the few instances in which being a sparsely populated small island kingdom archipelago is an advantage.”
There are still several aspects and angles to be considered before accepting BTC as the country’s official legal tender, such as internet connectivity across the whole island and the overall integration of the cryptocurrency. However, it is very positive news for the people of Tonga and the whole crypto community, as it contributes to the further adoption of Bitcoin.
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