Former member of parliament of Tonga, Lord Fusitu’a, revealed that the country’s legal tender bill for Bitcoin is “modeled on” and is “almost identical” to that of El Salvador.
Bitcoin and Tonga
According to the latest tweets, Lord Fusitu’a hinted at the tentative arrival of Bitcoin as a legal tender for the Pacific island nation of Tonga. The former MP said the country could potentially adopt the cryptocurrency by November this year. The bill in question will be submitted to the House by September- October.
1. Sept/Oct Bill goes to Parliament. Passed.
2. Sent to Palace Office for submission to His Majesty for Royal Assent.
3.<A month – HM as advised by Privy Council assents to Bill.
4. 2-3 Weeks Gazetted by Govt activation date set.
4. On activation date #BTC becomes legal tender. https://t.co/TNjQjeEbjN
— Lord Fusitu’a (@LordFusitua) January 12, 2022
Lord Fusitu’a, a Tongan royalty, was reportedly working together with Jack Mallers, the CEO of Strike and architect of El Salvador’s Bitcoin project, to bring the BTC legal framework to Tonga.
He has been very vocal about the industry and has, time and again, asserted that the country can become more “competitive and wealthy” if it embraces the cryptocurrency. His focus has been on the remittance advantages that Bitcoin offers, which can potentially benefit the citizens regarding long-term saving.
While replying to a follow-up question on how a circular economy involving Bitcoin will be helpful, the former MP stated,
“An economy that uses bitcoin for payment at every stage of the supply chain. From the seed to the table. Pay for cassava roots and cattle in bitcoin from the farming supplier all the way to the waitress serving it to you at Kardo’s steak bar and every step in between in BTC.”
Many economists and world leaders have expressed their concern over countries following El Salvador’s suit. For countries such as Tonga, there are inflationary pressures at play to consider such a move as well.
El Salvador’s Bitcoin Portfolio
The young, maverick El Salvadorean President, Nayib Bukele made history last year after pushing Bitcoin as legal tender. However, his actions have failed to charm some experts who believe he may have cost the country $10 million amid the crypto market rout.
CryptoPotato recently reported that Bitcoin plummeted below $41,000 for the first time since September 2021. Interestingly, this was the same month when El Salvador went on an aggressive buying spree of the asset. Over the past year, El Salvador spent around $71 million at an average purchase price of $51,056 per BTC. Supposing the government has not sold its crypto holdings, the portfolio is down by 12% approximately.