Tonga has a high income from remittances – 38% of GDP. This demand makes a use case for CBDC very strong as is evidenced in Samalia and Gutemala.
Digital Financial Services is a focus for the NRBT to deepen financial inclusion. This is part of an Alliance for Financial Inclusion (AFI). The NRBT is modernising its national payment systems in conjuction with the PFIP.
As with other small island economies, CBDC may offer strong benefits. The infrastructure in Tonga needs more digitization before CBDCs can be rolled out; something which the NRBT is motivated to do.
The actual currency in Tonga is pegged to a basket of currencies which are the main trading partners with Tonga. – AUD, USD, JPY, and the NZD.