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

Another
domino
is
lined
up
to
fall
down
the
route
to
Bitcoinization.
On
Wednesday,
a
former
lawmaker
of
the
Pacific
island
nation
of
Tonga
shared
a
play-by-play
approach
to
adopting
Bitcoin
(BTC)
as
legal
tender. 

In
a
series
of tweets,
Lord
Fusitu’a,
a
former
member
of
parliament
for
Tonga, released an
ETA
for
Bitcoin
becoming
legal
tender
in
Tonga.
Copying

El
Salvador’s
playbook
,
the
move
could
onboard
more
than
100,000
Tongans
onto
the
Bitcoin
network.

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

In
a
follow-up
comment,
Fusitu’a

said

the
bill
is
“modeled
on
and
is
almost
identical
to
the
El
Salvador
bill.”

The
announcement
sowed
the
seeds
for
questions,
predictions
and
outright
jubilation
from
Bitcoin
Twitter
before
the
Tongan
set
the
record
straight.
He
enthusiastically
replied
that
the
timeline
for
BTC
becoming
legal
tender
could
happen
as
early
as
November
or
December
this
year, replying,
“Boom!
That’s
us,
brother!”
in
a
tweet.

In
2021,
it
was
widely
speculated
that
Tonga
would
become
one
of
the
next
countries
to
adopt
BTC
as
legal
tender.
Speculation
reached
a
fever
peak
following
a

podcast

Lord
Fusitu’a
undertook
with

Bedford-based
Bitcoiner
Peter
McCormack
.

During
the
conversation,
the
then-member
of
parliament
shared
the
remittance
case
for
adopting
BTC
as
legal
tender.
He
said
adoption
would
provoke:

“A
disposable
income
increase
by
30%.
With
that
extra
30%,
some
(people)
are
going
to
be
saving
it
rather
than
putting
it
into
the
economy
and
stacking
sats.”

Tonga
is
a
remote
island
nation
that

relies

upon
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
the
Tongan
population
numbers
just
six
figures,
the
Tongan
diaspora
is
vast.
The
International
Organization
for
Migration

estimates
 the
Tongan
population
living
abroad
at
126,000,
with
up
to
18,000
Tongans
in
Australia.

The
remittance
use
case

was
one
of
the
primary
drivers

for
El
Salvador
adopting
BTC
as
legal
tender.

According

to
the
World

Bank
,
Tonga’s
remittance
as
a
percentage
of
gross
domestic
product
is
substantially

higher

than
El
Salvador,
at
39%
vs.
24%,
respectively.



Related:




El
Salvador:
How
it
started
vs.
how
it
went
with
the
Bitcoin
Law
in
2021

Remittance
aside,
the
Lord
brought
up
domestic
advantages
for
adopting
the
open-source
protocol.
He

agreed

that
Tonga
could
create
a
BTC
circular
economy
and
that
it’s
“one
of
the
few
instances
in
which
being
a
sparsely
populated
small
island
kingdom
archipelago
is
an
advantage.”

When
the
islands’
internet
infrastructure
was
brought
into
question,
the
Tongan
claimed
internet
and
smartphone
penetration
rates exceeded
90%.
The
World
Bank’s
most
recent figures —
albeit
from
five
years
ago
in
2017

show
Tonga
at
50%
internet
penetration.

Bringing
the
islands
online
may
take
some
time,
but
Fusitu’a
is
adamant
about
his
country’s
BTC
future:

read original article here