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A South Pacific island, Tonga is preparing legislation to adopt Bitcoin as legal cash.
A small island nation, Tonga could be the second country after El Salvador to adopt Bitcoin as legal cash. Lord Fusitu’a, a former Tonga politician, stated on Twitter that a measure is in the works to incorporate Bitcoin into the everyday lives of Tonga citizens.
He outlined a five-step procedure for making BTC legal tender. He also stated that the bill should be fashioned after and nearly identical to El Salvador’s.
The residents of the islands, who rely primarily on remittances, should benefit immensely from this procedure. In addition, accepting Bitcoin would significantly reduce the fees associated with sending money home.
According to the International Finance Corporation, remittances from overseas provide a key source of income for four out of five Tongan households, accounting for around 30% of household consumption.
Apart from remittances, the country’s economy as a whole should benefit substantially from Bitcoin adoption. This is one of the rare occasions in which being a sparsely populated small island kingdom archipelago is a benefit, according to Fusitu’a.
Before recognizing Bitcoin as the country’s official legal cash, various factors must be examined, including internet availability over the entire island and the cryptocurrency’s overall integration. It is, nevertheless, really good news for the people of Tonga and the entire crypto community since it helps Bitcoin’s further adoption.
