The Pacific island nation of Tonga has announced the adoption of Bitcoin (BTC) as legal tender.
In a series of tweets, former MP Lord Fusitua announced a repeat of El Salvador’s plan of action to connect more than 100,000 Tongans to the Bitcoin network.
In a five-point outline, the Chair of the Global Organization of Parliamentarians Against Corruption described the path of adoption:
1. September / October. The bill goes to parliament. Ready.
2. The document is sent to the Palace Chancellery to be presented to His Majesty and receive royal assent.
3. Month – for the approval of the bill on the recommendation of the Privy Council.
4. 2-3 weeks for the document to come into force (activation).
4. On the day of activation, BTC becomes legal tender.
1. Sept/Oct Bill goes to Parliament. Passed.
2. Sent to Palace Office for submission to His Majesty for Royal Assent.
3.4. 2-3 Weeks Gazetted by Govt activation date set.
4. On activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN
– Lord Fusitu’a (@LordFusitua) January 12, 2022
As Fusitua noted, the bill “is modeled almost identical to that of El Salvador.” Its adoption may take place in November or December this year.
Tonga is a remote island nation receiving remittances from countries such as Australia, New Zealand and the United States. The International Finance Corporation estimates that Tonga earns the highest income from remittances than any other country in the world, up to about 30% of household income.
According to the World Bank, the volume of remittances in Tonga as a percentage of GDP is significantly higher than in El Salvador – 39% versus 24%.
Tonga sees other benefits of adopting the open source protocol, such as the creation of a circular economy in bitcoin. This is facilitated by the island’s Internet infrastructure, where the penetration rate of the Internet and smartphones exceeds 90%.
An economy that uses Bitcoin to pay at every stage of the supply chain. From seeds to dishes on the table.
Pay for cassava roots and cattle in bitcoin to an agricultural supplier and a waitress who serves you at Kardo Steak Bar.
An economy that uses bitcoin for payment at every stage of the supply chain. From the seed to the table. Pay for cassava roots and cattle in bitcoin from the farming supplier all the way to the waitress serving it to you at Kardo’s steak bar and every step in between in #BTC https://t.co/oR48NGzTGm
– Lord Fusitu’a (@LordFusitua) January 13, 2022
#island #state #Tonga #preparing #legalize #bitcoin