El Salvador has been accepting Bitcoin (BTC) as a legal tender since last year. This is a big step towards the adoption of bitcoin and, according to many, the beginning of further mass adoption of cryptocurrency. Now the next country is queuing up to accept BTC as the legal tender: Tonga!
The Bitcoin Act could already be passed in September
Several tweets from Lord Fuchidua, a former Tongan parliamentarian, indicate that he wants to introduce bitcoin legislation in parliament in September or October. The law was inspired by the law of bitcoin in El Salvador. In a tweet, Lord Fuchidua shared a 5-step plan, estimating how long it will take for the law to take effect.
“1. The September / October Act goes to Parliament. Approved.
2. Sent to the Palace Office for His Majesty’s signature for royal approval.
3.4. Published in the Gazette for 2-3 weeks.
4. BTC will become a legal tender on the date of implementation.
1. The September / October Bill goes to Parliament. Passed.
2. Sent to the palace office to submit to His Majesty for royal approval.
3.4. Published in the Gazette for 2-3 weeks.
4. On the date of implementation #BTC Becomes a legal contract. https://t.co/TNjQjeEbjN– Lord Fusitua (ordLordFusitua) January 12, 2022
In the first instance, Lord Fuchidua says the law will be passed without difficulty. In a later reply, he said, “I will see the law put forward.” It is not entirely clear whether this will actually ensure that the law is passed immediately.
Tonga can make good use of bitcoin
Tonga is a small group of islands off the coast of New Zealand and Australia. It has a population of about 106 thousand and families on the islands receive a large portion of their income by relocating abroad. They live like this 126 thousand Tongans abroad. They still send money to families living on the islands with their income 30% Contains transfers.
Cryptocurrency will come in handy as Bitcoin can be used to send value securely and cheaply over the internet. Money transfer services often charge high rates and in principle lose a lot of value. In Conversation With Fitcoin podcaster Peter McCormack, Lord Fuchidua said accepting 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 the chads.”
“Introvert. Communicator. Tv fanatic. Typical coffee advocate. Proud music maven. Infuriatingly humble student.”
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