Tonga could see Bitcoin getting adopted as legal tender in December.
The previous year witnessed a watershed moment in the history of monetary economics when El Salvador, a sovereign country, embraced Bitcoin, a digital currency, as legal tender.
2022 could see more such action.
Pacific island country, Tonga is planning to take a leaf out of El Salvador’s book and adopt Bitcoin as legal tender.
Former Member of Parliament of Tonga and Bitcoin advocate, Lord Fusitu’a is pushing for Bitcoin adoption in his country.
He is going to table a legislative bill and believes that by November 2022 or December 2022, the country could decree Bitcoin as legal tender.
The bill will be ‘almost identical’ to that of El Salvador as per Lord Fusitu’a.
He makes the case for Bitcoin by claiming that Tonga has “95.5% smart phone penetration 99.5% internet penetration.”
The country is heavily dependent on remittances, which constitute over 38% of its GDP, according to World Bank’s data.
Given the small population (100 thousand as per World Bank) and its reliance on remittances, Tonga can rake in more money in its economy through Bitcoin. Further adoption of Bitcoin could also drive up its price. Currently, Bitcoin is trading for approximately 44200 USDT on Binance.
As per his vision, Tonga could have a complete circular economy wherein people would use Bitcoin to pay for their daily needs.
Cryptocurrencies and their underlying technology have created a whole new economy, wherein the flow of money takes place digitally. Moreover, who could have thought that more money could be created by just using computers, as in the case of blockchain miners/validators. Money has taken different forms throughout history from precious metals to paper currency. Now it is taking the digital form.
News recommendation: Polygon Deflationary Update. Soon to Be a Reality