Tonga will probably be the next country to make Bitcoin legal tender

[Fortify]

It has been 3 months since El Salvador made history by making Bitcoin legal tender in their country, alongside the USD(September 7th, 2021).

The world has reacted in different ways. For example, the International Monetary Fund (IMF) has recommended El Salvador to not use Bitcoin as a legal tender:

"Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender."

Other countries are starting to think about making the same move that El Salvador just did, such as Paraguay, and many others. The main motivations behind this are high fees of remittances, increasing inflation, and not having access to traditional banks. After reading a bit more in detail about the actual situation in each country I realized some countries are not really putting any actual laws into parliament, others are considering using different cryptos, etc. I think Tonga is probably the closest to actually achieve Bitcoin as a legal tender:

"Tonga’s Parliamentary Representative Wants Bitcoin To Become Legal Tender"

People in this small island use Western Union for remittances, and they have to pay up to 30% in fees. Making Bitcoin legal tender, alongside the Tongan Pa’anga, would immediately help people save a lot in money transfers. MP Lord Fusitu’a will be presenting a Bitcoin bill, similar to the one from El Salvador, to the Parliament of the Kingdom of Tonga by May 2022. We will have to wait and see if it passes.

People need to be very careful about the underlying reasons that drive this sort of activity. While it has a commendable undertone - he claims western union costs 30-50% in fees (this seems ridiculously high?) I just wonder what their banking companies are charging to make Western Union the money exchanger of choice? Do they not have a single commercial bank that can offer much more favorable rates? It would seem like a much easier and straight forward action to get the government to force the rates of these companies down to a much fairer level rather than forcing companies to accept a whole new currency. I always wonder how financially invested these particular MP's are in Bitcoin when they start going this route, because it could help make them very rich if it boosts the price a little.

[cryptomaniac_xxx]

Getting the first 2-3 countries on board is going to be the toughest task. El Salvador has already made Bitcoin the legal tender and a few other countries may do so in 2022. Personally I wasn't expecting this much progress before 2024-25. The multi-trillion dollar stimulus measures announced by the US government has horrified a lot of people, both within the States and outside. They are now seriously thinking about a currency which is protected against inflation and Bitcoin is the best choice right now (especially since gold is performing poorly).

Well you might be right, if governments around the world will really have to look at better options right now to hedge against inflation, then bitcoin will be the best choice as opposed to gold. But the problem is that they are really afraid of bitcoin and definitely because of what they heard and it's volatility. So for me it might take more time, like 10 years to allow it to slowly sip and make a progress. Government in Asia and Latin and Central America might be the first one to make a move like what El Salvador did this year.

[Sterbens]

Getting the first 2-3 countries on board is going to be the toughest task. El Salvador has already made Bitcoin the legal tender and a few other countries may do so in 2022. Personally I wasn't expecting this much progress before 2024-25. The multi-trillion dollar stimulus measures announced by the US government has horrified a lot of people, both within the States and outside. They are now seriously thinking about a currency which is protected against inflation and Bitcoin is the best choice right now (especially since gold is performing poorly).

I also wouldn't be too surprised if in 2022 there will be other countries following in El Salvador's footsteps. This has definitely been a well-thought-out plan. Let's wait and see which country will first announce the adoption of Bitcoin in 2022.
There will be a country that will reflect on the achievements of El Salvador, strictly speaking here El Salvador must really show a positive output.

[Sithara007]

Well you might be right, if governments around the world will really have to look at better options right now to hedge against inflation, then bitcoin will be the best choice as opposed to gold. But the problem is that they are really afraid of bitcoin and definitely because of what they heard and it's volatility. So for me it might take more time, like 10 years to allow it to slowly sip and make a progress. Government in Asia and Latin and Central America might be the first one to make a move like what El Salvador did this year.

Volatility is definitely an issue with cryptocurrencies (including Bitcoin). But look at the investment from the government of El Salvador. In the end, it benefitted them greatly. The investment in cryptocurrency can never be compared to forex reserves. Rather, it should be compared to the Sovereign Wealth Funds (SWFs). Most of the SWFs are comprised of volatile assets such as stocks and mutual funds. And I don't think that Bitcoin is anymore volatile than mid-cap and small-cap stocks at this moment.

[DrBeer]

The question is - haven't you all noticed one interesting trend? Only those countries where, to put it mildly, a low standard of living, not a very successful / skillful / adequate government, are "introducing the official means of payment" cryptocurrency "100%? You will not find a single country with a functioning economy, local currency, industry or manufacturing in the news. And what is important - they, those who introduce cryptocurrency as a means of payment, do not understand that this is not a solution, this is an attempt to use the hype and "fashion trend", to give a "solution to all problems" type.

[Kyraishi]

"Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender."

Utter bullshit.

The arguments are completely nonsensical. How does volatility have to do with BTC's ability to be legal tender?

It's all a matter of what the mainstream perception of BTC is. If a lot of people denominate their purchases in BTC as a native asset, then there will be no issues with volatility.

[Fatunad]

"Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender."

Utter bullshit.

The arguments are completely nonsensical. How does volatility have to do with BTC's ability to be legal tender?

It's all a matter of what the mainstream perception of BTC is. If a lot of people denominate their purchases in BTC as a native asset, then there will be no issues with volatility.

In addition of that on which if this one had become the main issue then why we are seeing that El Salvador doesnt really care that all when it comes to volatility?
It cant really be denied that this one is really a big problem when it comes to or do talks about overall acceptance because it will surely be part of it
and a certain country would consider out first before making such decision in the end.If there are other countries who had been eyeing for this
one then so be it and thats an another good news.

[Lucius]

The question is - haven't you all noticed one interesting trend? Only those countries where, to put it mildly, a low standard of living, not a very successful / skillful / adequate government, are "introducing the official means of payment" cryptocurrency "100%?

I see this as a completely normal thing, because if I take the example of El Salvador, then Bitcoin was initially emphasized as a means to enable their emigrants to send money home in a cheaper and faster way. This goal was achieved by setting up a large number of crypto ATMs in El Salvador, but also in all major US cities - the goal was achieved.

Of course, this was not the end, but only the beginning of what their president is trying to do for his compatriots. Nonetheless, it was a bold move that put the country in the focus of the whole world, and if the project succeeds, people will look at Bitcoin in a completely different light.

You will not find a single country with a functioning economy, local currency, industry or manufacturing in the news. And what is important - they, those who introduce cryptocurrency as a means of payment, do not understand that this is not a solution, this is an attempt to use the hype and "fashion trend", to give a "solution to all problems" type.

Every sovereign country protects its national currency in all possible ways, so it is logical that we cannot expect to read about how the UK or US have the same approach to Bitcoin as El Salvador which has not had its national currency for 20 years. Bitcoin has always been an alternative for me, the world we live in will not allow anything more than that in the near future  - despite the illusions that some have about how Bitcoin will become a global currency.

[Vaskiy]

More countries were discussed of being on the next list of bitcoin adoption. Few of the countries include Vietnam, Paraguay, Kenya, South Africa. But, there is no official statement from any of the respective government. Everything is listed based on some speculation. Apart from these countries, on a survey taken in USA 27% of people showed interest of making bitcoin legal tender. I don't know how far this is true, but every country is watching El Salvador closely. Soon we can see more countries legally adopting bitcoin.

[Sithara007]

More countries were discussed of being on the next list of bitcoin adoption. Few of the countries include Vietnam, Paraguay, Kenya, South Africa. But, there is no official statement from any of the respective government. Everything is listed based on some speculation. Apart from these countries, on a survey taken in USA 27% of people showed interest of making bitcoin legal tender. I don't know how far this is true, but every country is watching El Salvador closely. Soon we can see more countries legally adopting bitcoin.

From where did you got this list? I am surprised with the inclusion of Vietnam, because until very recently, Bitcoin was explicitly banned there and there were reports of users getting arrested. I have heard about countries like Paraguay, Panama, Malta and Cyprus. But the inclusion of Kenya, South Africa.etc surprises me. Anyway, El Salvador was the first and that country (along with the president Nayib Bukele) will be having a special place with each of us. And the people of El Salvador have benefitted greatly from the Bitcoin adoption.

[titular]

I think that many countries are waiting to see how the IMF will react to El Salvador.

It's been reported that El Salvador is still looking to get money from the IMF. It is unclear how they will work with them, given they are doing something the IMF warned them about. The IMF has made it clear to them that their bitcoin legal tender law could be dangerous and thus advised against it.

I will be interested to see if El Salvador gets the money they are looking for. If they do, I think we see a lot of governments make the leap.

[DrBeer]

I think that many countries are waiting to see how the IMF will react to El Salvador.

It's been reported that El Salvador is still looking to get money from the IMF. It is unclear how they will work with them, given they are doing something the IMF warned them about. The IMF has made it clear to them that their bitcoin legal tender law could be dangerous and thus advised against it.

I will be interested to see if El Salvador gets the money they are looking for. If they do, I think we see a lot of governments make the leap.

Well, you can see for yourself - bitcoin doesn’t save anyone, everyone needs real money for real sectors of the economy! Until the crypt becomes full-fledged, it is accepted by the whole world as a payment currency, for ANY purposes, it will only be a crypto asset, but nothing more

[South Park]

"Given bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender."

Utter bullshit.

The arguments are completely nonsensical. How does volatility have to do with BTC's ability to be legal tender?

It's all a matter of what the mainstream perception of BTC is. If a lot of people denominate their purchases in BTC as a native asset, then there will be no issues with volatility.

They are trying to sell the idea that bitcoin is bad because of its  price swings, but what they are not telling the population is that even if the price can be volatile the price of bitcoin has the tendency to go up so it is a great way to invest and save their money, however when it comes to fiat I think we can recognize that it is more stable than bitcoin, but its overall purchasing value goes down every single year and over the long term it is a bad way to save.

[romero121]

Rather than adoption we can expect more countries to accept and legalize cryptocurrency. Countries fear of losing the financial control if bitcoin is made legal. In reality this isn't the truth, and people and rulers have started to realise it.

Following the growth difference before and after the adoption of bitcoin as legal tender we can see more small countries as El Salvador to adopt and accept bitcoin directly than through third party services.

[Vaskiy]

More countries were discussed of being on the next list of bitcoin adoption. Few of the countries include Vietnam, Paraguay, Kenya, South Africa. But, there is no official statement from any of the respective government. Everything is listed based on some speculation. Apart from these countries, on a survey taken in USA 27% of people showed interest of making bitcoin legal tender. I don't know how far this is true, but every country is watching El Salvador closely. Soon we can see more countries legally adopting bitcoin.

From where did you got this list? I am surprised with the inclusion of Vietnam, because until very recently, Bitcoin was explicitly banned there and there were reports of users getting arrested. I have heard about countries like Paraguay, Panama, Malta and Cyprus. But the inclusion of Kenya, South Africa.etc surprises me. Anyway, El Salvador was the first and that country (along with the president Nayib Bukele) will be having a special place with each of us. And the people of El Salvador have benefitted greatly from the Bitcoin adoption.

Refering the below two articles published on different news sources I've added these countries. How far this is true is unknown. As you mentioned there is series opposition from Vietnam, but the usage index seems high compared to more other countries.

El Salvador has adopted Bitcoin as official legal tender - but will other countries follow?
The world’s fastest crypto adopting countries

[DrBeer]

More countries were discussed of being on the next list of bitcoin adoption. Few of the countries include Vietnam, Paraguay, Kenya, South Africa. But, there is no official statement from any of the respective government. Everything is listed based on some speculation. Apart from these countries, on a survey taken in USA 27% of people showed interest of making bitcoin legal tender. I don't know how far this is true, but every country is watching El Salvador closely. Soon we can see more countries legally adopting bitcoin.

From where did you got this list? I am surprised with the inclusion of Vietnam, because until very recently, Bitcoin was explicitly banned there and there were reports of users getting arrested. I have heard about countries like Paraguay, Panama, Malta and Cyprus. But the inclusion of Kenya, South Africa.etc surprises me. Anyway, El Salvador was the first and that country (along with the president Nayib Bukele) will be having a special place with each of us. And the people of El Salvador have benefitted greatly from the Bitcoin adoption.

Refering the below two articles published on different news sources I've added these countries. How far this is true is unknown. As you mentioned there is series opposition from Vietnam, but the usage index seems high compared to more other countries.

El Salvador has adopted Bitcoin as official legal tender - but will other countries follow?
The world’s fastest crypto adopting countries

Attempts to transfer the vector of solutions from a practical plane to a technologically fabulous one, in the near future will create huge problems in countries such as El Salvador. Let me explain - instead of modernizing the real economy and replacing an inadequate government, which is the primary cause of real problems in the country, they are trying to play on trends and talk about bitcoin the savior. It will not happen. This is analogous to the fact that instead of treating a complex disease, an antiseptic would be applied to the surface manifestations of this disease. And while everyone is cheerfully and cheerfully smearing spots on the skin with spunzhiks, the disease irreversibly kills the body from the inside.

[TheNineClub]

More countries were discussed of being on the next list of bitcoin adoption. Few of the countries include Vietnam, Paraguay, Kenya, South Africa. But, there is no official statement from any of the respective government. Everything is listed based on some speculation. Apart from these countries, on a survey taken in USA 27% of people showed interest of making bitcoin legal tender. I don't know how far this is true, but every country is watching El Salvador closely. Soon we can see more countries legally adopting bitcoin.

From where did you got this list? I am surprised with the inclusion of Vietnam, because until very recently, Bitcoin was explicitly banned there and there were reports of users getting arrested. I have heard about countries like Paraguay, Panama, Malta and Cyprus. But the inclusion of Kenya, South Africa.etc surprises me. Anyway, El Salvador was the first and that country (along with the president Nayib Bukele) will be having a special place with each of us. And the people of El Salvador have benefitted greatly from the Bitcoin adoption.

Refering the below two articles published on different news sources I've added these countries. How far this is true is unknown. As you mentioned there is series opposition from Vietnam, but the usage index seems high compared to more other countries.

El Salvador has adopted Bitcoin as official legal tender - but will other countries follow?
The world’s fastest crypto adopting countries

Attempts to transfer the vector of solutions from a practical plane to a technologically fabulous one, in the near future will create huge problems in countries such as El Salvador. Let me explain - instead of modernizing the real economy and replacing an inadequate government, which is the primary cause of real problems in the country, they are trying to play on trends and talk about bitcoin the savior. It will not happen. This is analogous to the fact that instead of treating a complex disease, an antiseptic would be applied to the surface manifestations of this disease. And while everyone is cheerfully and cheerfully smearing spots on the skin with spunzhiks, the disease irreversibly kills the body from the inside.

Finally, someone talking some sense. This is basically that meme of a water tank having a leak, and the guy slapping a bandage (or something of the sort) on it. I am not questioning El Salvador doing this, their situation is that they are grasping at straws, but, In a global sense, them adopting BTC will do little for them (for the reasons you mentioned above), and nothing for BTC in the long run. Drastic moves like this rarely pan out as they should, it's rather the gradual and organic evolution that makes for a longer lifespan. It just worries me that, if it backfires, the critics will point to it as being definitive proof that crypto just doesn't work.

[South Park]

Finally, someone talking some sense. This is basically that meme of a water tank having a leak, and the guy slapping a bandage (or something of the sort) on it. I am not questioning El Salvador doing this, their situation is that they are grasping at straws, but, In a global sense, them adopting BTC will do little for them (for the reasons you mentioned above), and nothing for BTC in the long run. Drastic moves like this rarely pan out as they should, it's rather the gradual and organic evolution that makes for a longer lifespan. It just worries me that, if it backfires, the critics will point to it as being definitive proof that crypto just doesn't work.

You can be sure that if something goes wrong at El Salvador and their adoption of bitcoin this is going to be used as ammunition against bitcoin and all cryptocurrencies, also I do not think that other governments are just waiting patiently for this and instead are actively trying to sabotage bitcoin adoption at El Salvador, as we saw protests against bitcoin in that country that most likely were sponsored by foreign powers, still even if that happens at the end it does not change anything at a fundamental level about bitcoin, and slowly but surely it will begin to be adopted independently by the people that have a use for it.

[Maslate]

I wouldn't be surprised if they'll legalize bitcoin.  A country that is not good economically has all the freedom to try to make to develop their country and they see that opportunity in crypto, it just has to be regulated so everything will be under control and us investors seeing countries adopting bitcoin as their legal tender would boost confidence in investing and holding it for long term.

Looking forward to further development and great news, I hope this will work out effectively.

[Sithara007]

I wouldn't be surprised if they'll legalize bitcoin.  A country that is not good economically has all the freedom to try to make to develop their country and they see that opportunity in crypto, it just has to be regulated so everything will be under control and us investors seeing countries adopting bitcoin as their legal tender would boost confidence in investing and holding it for long term.

Looking forward to further development and great news, I hope this will work out effectively.

I believe that Bitcoin is already legal there. Recognizing as the legal tender is one thing, and regulating the asset and making it legal to deal is another. So far we haven't heard anything concrete about countries other than El Salvador. I have heard rumors about Malta, Panama and Paraguay, but the effort to award the status of legal tender has run in to roadblocks and obstacles in all these countries. Anyway, we were not expecting everything to proceed smoothly. Within the next 2-3 years, we are going to witness a big jump in acceptance.