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Tonga Parliament May Be Eyeing Bitcoin As Legal Tender, After El Salvador

A politician in Tonga is working on a bill that will allow bitcoin as legal tender in Tonga.

Additionally, Lord Fusitu’a, Tongan MP is the politician working on this bill to make Bitcoin a legal tender.

Fusitu’a notes that the country’s parliament in May 2022 will receive a Bill, while in an interview with Financial Review. Of course, it will follow the El Salvador-style Bitcoin bill.

More so, Fusitu’a notes how his country will benefit from the bill. Especially, together with the existing state currency—the Tongan Pa’anga.

Furthermore, around mid-2021 the politician makes first interest in Bitcoin. Although, his interest then is just on making investments in the asset class.

Notably, for the law to pass, it’ll be needing adequate support from other Tonga politicians, also country’s central bank.

Records shows that as at 2020, Tonga has a population of merely over 100,000, with GDP of about $500 million. Notwithstanding, as a small Pacific Island nation, Tonga is setting an exemplary path for other Pacific Islands. We could have them all adopting the decentralized asset.

The Island Nation’s GDP comes majorly from foreign remittances. However, adopting bitcoin in Island will improve its cross-border payment systems.

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Tonga May Follow El Salvador’s Bitcoin Adoption Path

El Salvador is the first country to make Bitcoin legal tender, in September. Conclusively, this shows deeply how cryptocurrencies are becoming a major part of global financial system. Thereby, setting a model for other nations to follow, which Tonga is considering to tread.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.