For the last two years, Tonga has been described as one of the nations that could legalize Bitcoin by recognizing it as a legal tender and national currency, similar to the El Salvador case. The process of the legalization proposal is still going, and according to several analysts, the final decision about BTC being accepted as a national currency could occur next month.
The development in Tonga is interesting for several reasons regarding factors, topics, and ideas discussed in Bitcoin. One example is geothermal energy by using active volcanos in the country. This partly reminds me of discussions in El Salvador about how volcano energy could be used for BTC mining.
Another interesting idea is that parts of the income from Bitcoin energy mining could be used for creating a basic income or monetary divided system shared directly to citizens. This idea is promoted by a former member of parliament, Lord Fusitu'a, who is seen as the main promoter of Bitcoin legalization in Tonga. Lord Fusitu'a has stated that Bitcoin would also be a way for Tongans, in general, to achieve "financial freedom" and reduce economic dependence on international financial institutions such as the International Monetary Fund.
When it comes to economic freedom, wealth, and quality of life, Tonga is seen as among the poorest countries worldwide. The country's economic development and daily life depend much on remittances and payments made by Tongans living in other parts of the world as Australia. Thereby, it remains to be seen how economic decentralization can improve the situation in Tonga during the 2020s.
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