Cryptocurrency

Tonga copies El Salvador bill to make bitcoin legal tender, says ex-MP

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Another domino lined up and fell down the road to Bitcoinization. Yesterday, the Pacific island nation of Tonga shared a method for adopting Bitcoin (bitcoin) as legal tender.

in a series of tweets, former Tongan MP Lord Fusitu’a issued an ETA for Bitcoin to become legal tender in Tonga.copy salvador script, a move that could allow more than 100,000 Tongans to join the Bitcoin network.

The President of the Global Group of Parliamentarians Against Corruption (GOPAC) describes the path of adoption in his five-point plan:

in follow-up Comment, Fusitu’a said the bill was “modeled on the El Salvadoran flag of the El Salvador Act, almost identical to the El Salvadoran flag”.

The announcement sowed doubts, predictions and cheers from Bitcoin Twitter before the Tongans broke the record.He enthusiastically replied that the timeline for BTC becoming fiat could happen as early as November or December of this year, replying “Boom! It’s us, bro!” in a tweet.

In 2021, there is widespread speculation that Tonga could be one of the next countries to adopt BTC as legal tender.After speculation reached its peak podcast Lord Fusitu’a with Bedford-based Bitcoiner Peter McCormack.

During the conversation, the then-Congressman shared the case of remittances that adopted Bitcoin as legal tender. He said adoption would trigger:

“Disposable income has increased by 30%. With that extra 30%, some (people) will save it instead of throwing it into the economy and piling it up.”

Tonga is a remote island nation that relies on money transfer From countries such as Australia, New Zealand and the United States.International Finance Corporation estimate Tonga earns more from remittances than any other country in the world, contributing up to 30% of household income.

Also, while Tonga has a population of only six figures, the Tongan diaspora is huge.International Organization for Migration estimate There are 126,000 Tongans living abroad, including as many as 18,000 Tongans in Australia.

Remittance use case is one of the main driving forces El Salvador adopts Bitcoin as legal tender.according to the world Bank, Tonga’s remittances as a significant percentage of GDP higher than El Salvador, at 39% and 24%, respectively.

related: El Salvador: How it started and how it relates to Bitcoin law in 2021

Remittances aside, Lord brings the domestic advantage of adopting an open source protocol.he agree Tonga could create a BTC circular economy, and it is “one of the few examples where the small, sparsely populated Kingdom Archipelago has an edge.”

Tonga claims internet and smartphones are ubiquitous as island’s internet infrastructure comes into question rate more than 90%.The World Bank’s recent data – albeit five years ago in 2017 – showing Tonga’s internet penetration rate at 50 per cent.

It may take some time to bring the islands online, but Fusitu’a is a firm believer in the future of BTC in his country: