The central bank of Fiji, a Pacific island nation, issued a public notice cautioning against the use of cryptocurrencies like Bitcoin, Ethereum, and Tether, emphasizing that they are not recognized as legal tender in the country.
According to the announcement by the Reserve Bank of Fiji (RBF), purchasing or investing in cryptocurrencies using funds held in Fiji is considered illegal under the RBF Act (1983).
The RBF reiterated that legal tender in Fiji consists of currency notes and coins issued by the Reserve Bank of Fiji, with the Fijian dollar serving as the official currency since 1969.
Individuals found in violation of the central bank’s policy on cryptocurrency may face penalties outlined in the RBF Act (1983) and the Exchange Control Act (1950).
While Pacific Island countries like Fiji, Palau, Solomon Islands, and Vanuatu are exploring central bank digital currencies (CBDCs), they do not officially recognize private cryptocurrencies or stablecoins. Cash remains the primary mode of transaction for the majority of Fijians.
Reserve Bank of Fiji Governor Ariff Ali acknowledged the presence of businesses promoting cryptocurrency investment schemes in Fiji through various channels, including social media.
However, Ali emphasized that the central bank has not licensed or authorized any entity to offer cryptocurrency investments or trade in virtual assets in Fiji. Therefore, the public is strongly advised against participating in such schemes.
Globally, there has been a significant push towards crypto-focused regulations and legislation, with over 40 countries making strides in this regard in 2023. These efforts primarily target stablecoin regulation, travel rule compliance, licensing and listing guidance, and overall crypto framework development, as highlighted in a report by PriceWaterhouseCoopers (PwC) in 2023.