Tonga copies El Salvador's law to make Bitcoin an official currency

A former member of Tonga's parliament, Lord Fositwa, has predicted that his country will pass a law roughly identical to El Salvador and adopt bitcoin as an official currency by next November.  

Coingraph quoted Lord Fusitwa as saying that legalizing Bitcoin in Tonga, by copying El Salvador law, could lead to the inclusion of more than 100,000 citizens in the Bitcoin network.  

Faustoa tweeted that the bill was "almost modeled on the El Salvador bill".

Noting that the timeline for converting bitcoin into fiat currency could occur as early as November or December this year.

In the past year, Tonga has seen widespread expectations that it will become one of the next countries to adopt Bitcoin as a legal currency.

The speculation came to a head after an audio broadcast that Lord Fossetoa had with one of the biggest Bitcoin influencers, Peter McCormack.

During the conversation, the then-Member of Parliament was involved in the issue of remittances for the adoption of Bitcoin as legal tender.  

Tonga is a remote island nation that relies on remittances for its citizens who work in several countries, including Australia, New Zealand and the United States.

The International Finance Corporation estimates that Tonga ranks first among the world's countries in the volume of remittances it receives, which is more than any other country in the world.

While Tonga's population is less than 1 million, the proportion of its citizens who live and work abroad is very large.

The International Organization for Migration estimates the population of Tonga living abroad at 126,000, with as many as 18,000 of them in Australia alone.

 The issue of the use of remittances from abroad was one of the main motivations in El Salvador to adopt Bitcoin as a legal currency.

According to the World Bank, Tonga's remittances as a percentage of GDP are much higher than El Salvador's, at an estimated 39% versus 24%, respectively.

World Bank data shows that Internet and smartphone penetration rates in Tonga have exceeded 90%.

Lord Fusitwa pointed out the domestic advantages of adopting Bitcoin.

He asserted that Tonga could create a circular economy from Bitcoin.

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