El Salvador has accepted bitcoin (BTC) as legal tender since last year. It was a huge milestone for bitcoin adoption and, according to many, the start of a new massive adoption of cryptocurrency. Now the next country is lining up to adopt BTC as legal tender: Tonga!
Bitcoin law can already be voted in September
A number of tweets from Lord Fusitu’a, a former Tonga MP, indicate that he wants a Bitcoin law to be presented to parliament in September or October. The law is inspired by the Bitcoin law in El Salvador. In the tweet, Lord Fusitu’a shares a 5-step plan with an estimate of how long it will take for the law to take effect.
“1. The law of September / October passes to parliament. Accepted.
2. Sent to the Palace Office for signature by Her Majesty for Royal Assent.
4. 2-3 weeks sorted by government activation date.
4. BTC will be legal tender on the date of activation.
1. The September / October bill is presented to Parliament. Pass.
2. Sent to the Palace Office for submission to Her Majesty for Royal Assent.
4. 2-3 weeks Gazetted by Govt activation date set.
4. On the activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN
– Lord Fusitu’a (@LordFusitua) January 12, 2022
At the first stage, Lord Fusitu’a declares that the law will be passed without difficulty. In a subsequent response, he said that will be the case “because I will ensure that the law is tabled.” It is not entirely clear that this will actually ensure the immediate passage of the law.
Tonga can use bitcoin well
Tonga is a small group of islands near New Zealand and Australia. It has a population of around 106,000 and the families of the islands derive a large part of their income from transfers from abroad. Live like this 126 thousand Tongans abroad. They send money to families who still live on the islands with which their income is around 30% consists of transfers.
And since Bitcoin can be used to send value securely and affordably over the internet, cryptocurrency would be a great fit. Money transfer services often charge high rates, which in principle means a significant loss in value. In conversation with Bitcoin podcaster Peter McCormack, Lord Fusitu’a said adopting bitcoin could generate 30% more disposable income for Tongans:
“With that extra 30%, some (people) will save it instead of putting it in the economy and stacking sats.”
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