The central bank of Fiji, a small island nation in the Pacific, has recently issued a public notice clarifying its stance on cryptocurrencies and virtual assets such as Bitcoin, Ethereum, and Tether. The Reserve Bank of Fiji stated that these digital currencies are not considered legal tender in the country, and it is illegal for individuals to purchase or invest in them using funds held in Fiji.
Fiji’s crypto policy is based on the RBF Act (1983), which designates currency notes and coins issued by the Reserve Bank of Fiji as the only legal tender in the country. The Fijian Dollar has been the official currency since 1969, as well as from 1867 to 1873.
Violating the central bank’s position on cryptocurrencies may result in punishment under the RBF Act (1983) and the Exchange Control Act (1950). While not all Pacific Island countries have embraced private cryptocurrencies or stablecoins, Fiji, Palau, Solomon Islands, and Vanuatu have shown interest in exploring the possibility of issuing central bank digital currencies (CBDCs). Currently, cash remains the primary payment method for most Fijians in their daily transactions.
Reserve Bank of Fiji Governor Ariff Ali highlighted that some businesses in Fiji are promoting cryptocurrency investment schemes through various platforms, including social media. However, he emphasized that the central bank has not granted any licenses or authorization for cryptocurrency investments or trading in virtual assets in Fiji. Therefore, the public is strongly advised against engaging in cryptocurrency investment or trading schemes.
In 2023, it was reported that more than 40 countries had made significant progress in developing regulations and legislation for the crypto sector, indicating a growing global trend towards wider adoption of cryptocurrencies. According to a report by PwC, many countries have implemented new regulations and laws specifically targeting the cryptocurrency sector.
[Source: Chainalysis Global Index Score]
