There has been increasing optimism amongst crypto enthusiasts following the news that El Salvador adopted Bitcoin as a legal tender in a landmark move. Some have predicted that many countries would soon follow in the path of El Salvador by also adopting Bitcoin as a legal tender. That prediction is now closer to reality as Tonga is weighing making Bitcoin a legal tender, a move that will make the country the second to do so.
Lord Fusitu’a Sponsors Bitcoin Bill
Lord Fusitu’a, a Tongan politician, is the man championing the cause to adopt Bitcoin as a legal tender. He disclosed he is working on producing a Bitcoin bill while discussing with the Financial Review. This Bitcoin bill is expected to be debated on the floor of the country’s parliament by May next year.
During the interview with the Financial Review, he disclosed that Bitcoin will be accepted as a legal tender and will coexist with the Tongan Pa’anga, the country’s fiat currency. Also, he believes that the country will benefit immensely from having Bitcoin as a legal tender, as the cryptocurrency demonstrates a lot of potential.
Earlier this year, Lord Fusitu’a has expressed his fascination with Bitcoin and its potential, and was interested in the idea of investing in the cryptocurrency. Now it seems his interest has intensified with this Bitcoin bill being drafted that will change the financial structure of the country.
He is quite assured that they can follow El Salvador’s footstep by being the second country to make Bitcoin a legal tender. He thinks the success of Bitcoin in El Salvador can serve as an example for Tonga to follow.
For the Bitcoin bill to be adopted, there has to be extensive support for different arms of government. Especially important is the support of the country’s central bank, the other members of parliament has to be in support of the bill and most importantly, the citizens of Tonga should be open to adopting Bitcoin as a legal tender. If the country can surmount these challenges, then there is a good chance that by 2022, Tonga could adopt Bitcoin as a legal tender.
Bitcoin And Emerging Economies
With steps being taken in Tonga to adopt Bitcoin as a legal tender and Bitcoin already adopted as legal tender in El Salvador, a trend emerges that it’s the emerging economies that are the most accepting of cryptocurrency. Other countries that are considering a Bitcoin bill are also emerging economies, these include Panama, Colombia, Mexico etc.
This view is supported by Nayib Bukele, El Salvador’s President, who was of the opinion that adopting Bitcoin as a legal tender will help the country’s economy and also attract foreign investment. Also, the country will become more attractive to cryptocurrency companies, who could seek out the country for its Bitcoin friendly initiatives.
According to reports, it has been shown that cryptocurrency is being adopted at a high rate in emerging markets like Nigeria. Some reasons for this include protection against devaluation of fiat currency, sending and receiving money amongst other reasons.