Thursday, February 2

Bitcoin could be legal tender in the Kingdom of Tonga

El Salvador set a precedent in adopting Bitcoin as the country’s legal tender, and now another country will potentially follow in its footsteps. Why could the Kingdom of Tonga adopt Bitcoin in this way?

The Kingdom of Tonga could copy the model of El Salvador

On Jan. 11, Lord Fusitu’a, a former Tonga member of parliament, hinted on Twitter that Bitcoin could be established in the country as legal tender. In fact, the former parliamentarian believes that by November of this year the nation could adopt cryptocurrency. For this, between September and October the bill will be presented to the Chamber.

As expected, the announcement generated curiosity and a lot of debate among members of the crypto community. It is necessary to take into account that the measure could incorporate more than 100,000 Tongan citizens into the Bitcoin network.

One of the most repeated questions has to do with how the bill has been constructed and whether or not it is similar to the one applied in El Salvador. Given this, Fusitu’a assured that it is “almost identical to that of El Salvador.”

The news does not take everyone by surprise

Rumors began in 2021 that the Tonga Rhenium might adopt Bitcoin as legal tender. Especially after Lord Fusitu’a’s involvement in the podcast the Bedford Peter McCormack.

At the time, Fusitu’a asserted that, if they adopted Bitcoin, the nation would see “an increase in disposable income of 30%”. Also, during the podcast of Bitcoin Magzine, Fusitu’a claimed that the country can become more “competitive and wealthy” if it adopts the leading crypto.

Let’s know a little more about Tonga

Officially, the Kingdom of Tonga is an Oceanian country integrated within Polynesia and constituted as a parliamentary monarchy. The country has a population of slightly more than 100,000 inhabitants.

At an economic level, the Kingdom of Tonga is a country that is far from the big world markets and has limited natural resources. A fundamental aspect is that its main export is seafood and native products of the island, such as vanilla or coconut. However, this makes them dependent on the natural processes that the nation may experience and, therefore, they have a fragile economy.

According to him International Fund for Agricultural Development (IFAD), approximately 76% of the nation’s population live in rural areas, dependent primarily on agriculture and fishing.

We want to know your opinion! Do you think Bitcoin is a solution for Tongans?