Cryptocurrency is not legal tender warns the National Reserve Bank of Tonga Featured
16 Sune, 2021. The bank said it was compelled to issue a release after social media posts and mainstream media said bitcoin could become legal tender.
The statement followed a splurge in public discourse over the merits of bitcoin by the Niuas Noble's Representative Lord Fusitu'a.
The release said anyone who offered investments in crypto-assets such as bitcoin in Tonga would need a licence, and no licence had been issued to any business for this.
It also denied any plans were afoot to utilise Tonga's foreign exchange reserves to invest in cryptocurrency, and emphasised that foreign exchange reserves were bound to be invested in "high-quality assets with low credit risk", taking into account internationally recognised credit ratings.
"Any investment of the country's external reserves on any cryptocurrency is therefore highly unlikely, given its volatility and more importantly, it does not meet the minimum requirements for 'high-quality assets' and low credit risks," the statement said.
"Consideration of a Central Bank Digital Currency is still at its very exploratory phase to determine whether it is suitable to be introduced in a small island economy like Tonga."
The bank warned the public that any investment in crypto-assets is an individual financial decision made at one's own risk.
- RNZI
1 comment
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Quote ""Consideration of a Central Bank Digital Currency is still at its very exploratory phase to determine whether it is suitable to be introduced in a small island economy like Tonga."
It does not make sense.
Crypto Currency means that a Central Authority such as the Reserve Bank is NOT needed as buyer and seller can facilitate the transactions on their own. And in their own risks of course.
So you had just finished a transaction paid in CryptoCurrency then report it to this Central Bank Digital Currency? Does not make sense.
Or this Central Bank Digital Currency has access to records of your transactions? They can't do that unless that have access to your Secret Keys which is not possible.
Hausia