Key Takeaways:
- Tonga, an island country north to New Zealand, plans to adopt Bitcoin as legal tender.
- Mexican Senator put forth a proposal to follow El Salvador’s example, but the President is not on board.
YEREVAN (CoinChapter.com) – The Kingdom of Tonga, a tiny island nation in the South Pacific, announced its intention to declare Bitcoin (BTC) a legal tender. Lord Fusitu’a, a former member of the Tongan Parliament, introduced a four-step plan for Bitcoin adoption.
What is Tonga’s plan?
In detail, establishing remittance would be step one, followed by making Bitcoin a legal tender, starting up Bitcoin mining facilities, and, finally, moving national treasuries into Bitcoin.
While it might sound far-fetched, Lord Fusitu’a asserted that the Parliament plans on using geothermal energy from volcanoes to sustain the mining facilities.
It takes two megawatts of electricity to service 5,000 people. So 40,000 megawatts will service the entire national grid. Each volcano produces 95,000 megawatts at all times leaving much to spare. We will give every family hash huts. But, this is only 20,000 units, as there are only 20,000 families.
said Lord Fusitu’a.
Also read: El Salvador’s Bitcoin-loving President slams the US. “We are not your colony!”
The official added that each volcano could generate $2,000 of Bitcoin each day. And that would be the Government’s “gift” to each Tongan family.
The Kingdom of Tonga plans to execute the four-step plan by Q4 2023. Moreover, Lord Fusitu’a claimed that the islands have a robust telecommunications infrastructure. Therefore, the latter could pull off an ambitious endeavor such as household mining.
The mining operations could be privately operated or in a joint venture with the government. There might be a need for a new state-owned enterprise for it to take off.
clarified the official.
Also read: Bitcoin bonds: El Salvador plans 20 bills to provide a legal framework.
However, the Kindom of Tonga is not the only country inspired by El Salvador’s example. A member of Mexico’s opposition party, Senator Indira Kempis, suggested the crypto-route could benefit the state.
Mexico and Bitcoin?
Furthermore, Senator Kempis asserted that early crypto adoption on the governmental level would help Mexico’s “global financial inclusion.”
I have surrounded myself with several people who have worked with bitcoin for years. I have a community of entrepreneurs, of technologists, and of friends who are very knowledgeable.
They have told me for a long time, ‘you have to be and you have to be part of this world’. And now that I am participating in politics, I seek to promote it.
commented the Senator on Feb. 21.
However, Mexico President Andrés Manuel López Obrador was not fond of the idea. In an Oct. 2021 press conference, he clearly stated that his administration has no interest in adopting Bitcoin as a means of payment—much less declaring it legal tender.
The President also asserted that he plans to focus on the fiat financial system instead, strengthening the Peso and fighting tax evasion.
Also read: Bitcoin falls below $35K, gold rallies as Russian army invades Ukraine.
While adopting Bitcoin as legal tender remains a risky endeavor due to its volatility, El Salvador remains the only country to have gone through the process.
The Kingdom of Tonga claims to have a clear view on the matter. But Mexico is not likely to adopt the cryptocurrency any time soon, given the President’s stance on the issue.
