The central bank of Fiji, a Pacific island state, has issued a public notice informing that cryptocurrencies and virtual assets like Bitcoin, Ethereum, and Tether are not considered as legal tender in the country. The Reserve Bank of Fiji said in a statement that it is illegal for anyone to buy or invest in cryptocurrency using funds held in Fiji.
Fiji’s crypto policy
The bank informed the public that as the RBF Act (1983) provides, the legal tender in Fiji is currency notes and coins issued or deemed to have been issued by the Reserve Bank of Fiji. The currency of Fiji has been the Fijian Dollar since 1969, and also from 1867 to 1873.
A violation of the central bank position on cryptocurrencies may be punishable under the RBF Act (1983) and the Exchange Control Act (1950). Not all Pacific Island countries officially use private cryptocurrencies or stablecoins, but Fiji, Palau, Solomon Islands and Vanuatu have been toying with the idea of central bank digital currencies (CBDCs). Cash is the main payment instrument for almost all Fijians in their daily transactions.
Central Bank Digital Currency (CBDC) exploration
According to the Reserve Bank of Fiji Governor Ariff Ali, some businesses promote cryptocurrency investment schemes in Fiji through different platforms, including social media. Ali emphasized that the central bank has not licensed or authorized anyone to provide cryptocurrency investments or trade in virtual assets in Fiji. The bank claims that this is why the public of Fiji is counseled not to get involved in cryptocurrency investing or trading schemes.
In 2023, it was revealed that over 40 countries had made substantial progress in the development of regulation and legislation for the crypto sector, therefore showing that the trend for wider cryptocurrency adoption was growing at the global level. According to PwC’s report for 2023, many countries have adopted new regulations and laws aimed at the cryptocurrency sector.
Global Index Score Source: Chainalysis
