Tonga to copy El Salvador bill making Bitcoin legal tender, says former MP

Another domino line up to fall in the path of Bitcoinization. On Wednesday, a former lawmaker on the Pacific island of Tonga shared a game-play approach to adopting bitcoin (BTC) as legal tender.

In a series of tweets, Lord Fositwa, a former MP for Tonga, said, chest ETA for Bitcoin has become legal tender in Tonga. By copying El Salvador’s playbook, the move could lead to the inclusion of more than 100,000 Tongans on the Bitcoin network.

In his five-point plan, the chair of the Global Organization of Parliamentarians Against Corruption describes the pathway of adoption:

In a follow-up comment, Fusitu’a He said The bill is “modelled and nearly identical to the El Salvador bill.”

The announcement sowed the seeds of questions, predictions, and candid cheer from Bitcoin Twitter before Tongans put things right. He replied enthusiastically that the timeline for converting bitcoin to legal tender could happen in November or December of this year, reply, “Bubble! That’s us, brother!” in a tweet.

In 2021, it has been widely speculated that Tonga will become one of the next countries to adopt BTC as legal tender. Speculation came to a head in the wake of an podcast that Lord Fausitwa had with bitcoiner Peter McCormack in Bedford.

During the conversation, the then-Member of Parliament discussed the issue of remittances for the adoption of BTC as legal tender. Adoption will raise:

Increase spendable income by 30%. With that extra 30%, some (people) are going to save it instead of putting it in the economy and hoarding it.”

Tonga is a remote island nation that relies on remittances from countries, including Australia, New Zealand, and the United States. The International Finance Corporation estimates that Tonga receives more income from remittances than any other country in the world, contributing up to 30% of household income.

Furthermore, while Tonga’s population is only six figures, the Tongan diaspora is large. The International Organization for Migration estimates the number of Tonga living abroad to be around 126,000, with as many as 18,000 Tonga in Australia.

The issue of the use of remittances was one of the main motivations in El Salvador to adopt BTC as legal tender. According to the World Bank, Tonga’s remittances as a percentage of GDP are significantly higher than El Salvador’s, at 39% versus 24%, respectively.

Related: El Salvador: How It Started vs. How It Goes With Bitcoin Law in 2021

Regardless of the transfers, Lord brought up the local advantages of adopting the open source protocol. he agreed That Tonga could create a circular economy for Bitcoin and that it is “one of the few cases where the archipelago of a small, sparsely populated island kingdom would be an advantage.”

When the islands’ internet infrastructure was put into question, Tonga claimed internet and smartphone penetration rates exceeded 90%. The latest World Bank figures show – albeit five years ago in 2017 – that Tonga has an internet penetration rate of 50%.

It may take some time to bring the carrots online, but Fusitu’a is determined on the future of BTC for his country: