Lord Fusito – a Tongan lawyer, landowner and parliamentarian – is a strong proponent of making bitcoin a real currency within state borders. He plans to introduce a bill to make bitcoin legal tender alongside Tonga’s national currency, the panga.
Why make bitcoins legal tender in Tonga?
Tonga is a small island country and an archipelago in eastern Australia. As reported by the Financial Review, the first step Fusitu has taken towards Bitcoin adoption is working with Jack Maller’s “Strike” digital wallet. This will help Tonga receive full remittance payments from their workers abroad, which Fausto says is a critical issue.
“Tonga is the highest remittance country on Earth. Remittances range from 38% to 41.1% of GDP, depending on which World Bank figures you use.”
According to the MP, Western Union “takes 30 percent” of remittances sent to the country, as it is now. This is similar to El Salvador’s plight, where he says Western Union fees are “closer to 50%”. Similarly, El Salvador was the first country to submit a legal tender for bitcoin last month.
Through Strike, citizens of the country can use the Bitcoin Lightning Network to send remittance payments to each other at virtually no cost. Therefore, widespread use of the app can be an incredible boon for Tonga’s economic growth. Moreover, Strike may not need the approval of Parliament or the Central Bank of Tonga, as a complete business solution.
Jack Mallers, founder of Zap Solutions, is a fierce critic of Western Union, believing his wallet is the better alternative, which Twitter is now using to allow Bitcoin guides through the social media platform.
Besides remittances, Fusitu also believes that Tonga can take advantage of Bitcoin’s core properties as money.
“Bitcoin is the world’s first ever open-ended monetary system. Blockchain is the perfect storage medium for money if your goal is decentralization, full democracy and equity of money.”
Will Tonga Be Next to Legal Bidding for Bitcoin?
Regarding his legal tender bill, Fusitu will not be able to submit it until the opening of the next Parliament in Tonga in 2022. However, the MP remains confident that he can overcome political resistance to his proposal.
In fact, he may have a long way to go before he sees this bill pass. Sione Ngongo Kioa, Governor of the Reserve Bank of Tonga, is not entirely open to it.
“It is definitely not likely that Bitcoin will be adopted as an official alternative currency,” he said recently.
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