The Reserve Bank of Fiji (RBF) has recently issued a report alerting the public to the dangers of cryptocurrencies, such as Bitcoin, Ethereum, and Tether. This report highlights a contradiction in the discussions held by Fijian authorities, who had previously discussed the possibility of integrating Bitcoin into the local economy.
The RBF’s latest press release clearly states that digital currencies are not considered legal tender in Fiji, and their use for purchases is prohibited. The Bank asserts that the only legal tender in the country is the notes and coins issued by the RBF, as specified in the RBF Act of 1983.
This warning is a response to the increasing promotion of virtual currencies through various platforms, including social networks, which may be the reason why many people have a limited understanding of the legal status and risks associated with this type of investment.
The RBF explains that the volatility of cryptocurrencies involves the use of domestic funds, including the use of Fiji’s credit and debit cards for such transactions, which is illegal. The bank also warns that clients may face penalties under the strict Exchange Control Act.
The RBF has not granted any licenses in Fiji to those interested in offering cryptocurrency investments or trading services. The new Governor of the RBF, Mr. Ali, emphasizes that the bank does not permit any financial activity that is not licensed.
This statement from the central bank serves as a strong warning to residents to refrain from engaging in cryptocurrency transactions or investments. The RBF clarifies that it is not responsible for the aggressive marketing of these schemes or the risks associated with them.
Fijians should now be more aware of the potential risks and understand that violating RBF regulations on cryptocurrencies may have serious consequences, as outlined in the RBF and Exchange Control Acts. While the global discussion on cryptocurrencies continues, Fiji’s central bank remains committed to maintaining the integrity of its currency and ensuring the safety of its citizens. The RBF’s revelation emphasizes the importance for all institutional and individual investors to adhere to local financial laws and regulations.
