Tongan parliamentarian pushes for Bitcoin legalization

[ad_1]

A parliamentarian from Tonga is trying to convince the government to adopt Bitcoin as legal tender in the country. Bitcoin is the world’s most valuable cryptocurrency currently trading at over $ 52,000 (around Rs. 39.6 lakhs). Parliamentarian Lord Fusitu’a believes Tonga should follow El Salvador and recognize Bitcoin as legal tender. He believes the island nation is losing much of the money sent by its citizens working overseas as fees for money transfer platforms.

The crypto enthusiast believes Tonga should start by adopting the Strike digital wallet, based on the Bitcoin Lightning network, so that citizens working abroad can send money home at no additional cost. Between 250,000 and 300,000 Tongans have migrated to other countries to earn money. For the 100,000 inhabitants of Tonga, the money that their families or relatives send to other countries is an essential part of their livelihood and of the national economy.

Tonga is the most remittance dependent country in the world. Between 38% and 41.1% of our GDP, depending on which World Bank figures you use, are remittances. Thus, almost half of our economy is made up of money returned by our diaspora, according to a Financial Review report citing Lord Fusitu’a.

As a service charge, the international money transfer platform Western Union is reducing remittances that must reach Tonga from its diaspora working in foreign countries by 30%.

So our GDP in 2020 was $ 510 million (around Rs. 3,828.8 crore), so 30% of that amount or $ 60 million (around Rs. 450 crore) is a fee to Western Union, added the parliamentarian.

Citing the plight of El Salvador, Lord Fusitu’a said Western Union is cutting more than 50 percent of their remittances, which will no longer be a problem, however. In September, El Salvador became the first country to legalize Bitcoin as legal tender alongside the US dollar, which will facilitate international currency transactions without any additional fees.

Despite the Reserve Bank of Tonga’s reluctance to legalize Bitcoin, Lord Fusitu’a is preparing a bill to be extended before the King of Tonga, Tupou VI as well as Pohiva Tu’i’onetoa, the country’s prime minister.

In May 2022, the tabled private member’s bill will require votes for and against Tongan authorities and ministers, the outcome of which will decide Bitcoin’s entry into the country.

Earlier in June, Sione Ngongo Kioa, the governor of the Reserve Bank of Tonga, said they were not considering adopting Bitcoin as legal tender anytime soon.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be liable for any loss resulting from any investment based on a perceived recommendation, forecast or any other information contained in the article.

[ad_2]