By The central bank of the Pacific island country of Fiji has released a note to the public cautioning that cryptocurrencies and virtual assets such as Bitcoin, Ethereum, and Tether are not recognised as legal tender in the country.
In an announcement, the Reserve Bank of Fiji said it is illegal for any individuals to purchase or invest in cryptocurrencies using funds held in Fiji
The bank reminded the public that as per the RBF Act (1983) legal tender in Fiji is currency notes and coins issued or deemed to have been issued by the Reserve Bank of Fiji. The Fijian dollar has been the currency of Fiji since 1969 and was also the currency between 1867 and 1873.
Those in breach of the central bank’s stance on the use and promotion of cryptocurrency may be subject to penalties under the RBF Act (1983) and the Exchange Control Act (1950).
None of the Pacific Island countries officially utilize private cryptocurrencies or stablecoins, but Fiji, Palau, Solomon Islands, and Vanuatu, have been exploring the concept of central bank digital currencies (CBDCs). The vast majority of Fijians rely on cash for most of their daily transactions.
The Reserve Bank of Fiji Governor Ariff Ali has acknowledged that there are businesses promoting cryptocurrency investment schemes in Fiji through various platforms including social media.
Ali stressed that the central bank has not licensed or authorised anybody to offer cryptocurrency investments or trade in virtual assets in Fiji.
“Therefore, the public is strongly advised to refrain from participating in cryptocurrency investment or trading schemes currently being promoted in Fiji,” said the bank.
Crypto Regulations Making Significant Strides
Last year it emerged more than 40 countries had made significant strides in advancing crypto-focused regulations and legislation in 2023, indicating a growing global trend towards wider cryptocurrency adoption.
According to a report from professional services firm PriceWaterhouseCoopers (PwC) in 2023, several countries have undertaken various initiatives to develop regulations and legislation specifically tailored to the cryptocurrency industry.
The PwC report said the regulatory efforts are primarily focused on four key focus areas, including stablecoin regulation, travel rule compliance, licensing and listing guidance, and overall crypto framework development.
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