Plans for the implementation of a Bitcoin economy in Tonga by 2023 are advancing.
The four-step plan is being spear-headed by hereditary noble Lord Fusitu’a:
- Step 1 – Bitcoin remittance
- Step 2 – Approval of Bitcoin as legal tender
- Step 3 – Commencement of Bitcoin mining
- Step 4 – Conversion of national treasuries into Bitcoin
By the end of this year legislation will be given to the King for Royal Assent. Backers hope that by January 2023 the legal formalities will have been completed, with mining to start as early as Q3 2023.
In order for the mining to be successful, a robust electricity and internet structure needs to be in place. Tonga is blessed with both. According to Fusitu’a Tonga has enough infrastructure and bandwidth to expand ‘for another 100 years’ due to a favourable commercial arrangement with The World Bank signed 8 years ago.
As for electricity, 21 of Tonga’s volcanoes produce in excess of 2,000 MW annually. The national grid consumes 40 MW per year, meaning Tonga has “a potential 1960 MW with nothing to do.”
Fusitu’a envisages a government/private partnership or a solely private entity with overseas investment will be necessary for Tonga to reach it’s Bitcoin potential. Already a number of private Bitcoin players are involved in an unknown capacity, having donated mining equipment and other high tech systems towards the ambitious project.
