The Reserve Bank of Fiji (RBF) has recently issued a report cautioning the public about the dangers associated with cryptocurrencies such as Bitcoin, Ethereum, and Tether. This report highlights a contradiction in the discussions held by Fijian authorities, who previously discussed the possibility of integrating Bitcoin into the local economy.
The RBF’s latest press statement clearly states that digital currencies are not considered legal tender in Fiji and their use for purchasing goods and services is prohibited. The Bank asserts that the only legal tender in the country is the notes and coins issued by the RBF, as stipulated by the RBF Act of 1983.
This warning is a response to the increasing trend of promoting virtual currencies through various platforms, including social networks. Unfortunately, this has led to a lack of understanding among many people regarding the legal status and risks associated with investing in cryptocurrencies.
The RBF explains that the volatility of these currencies poses a risk to domestic transactions, including the use of Fiji’s credit and debit cards. Engaging in such transactions is illegal and may result in penalties under the strict Exchange Control Act.
The RBF emphasizes that it has not issued any licenses in Fiji for individuals or companies interested in offering cryptocurrency investments or trading services. This repression is aimed at preventing residents from engaging in financial activities that are not permitted by the RBF.
The public is urged to exercise caution and refrain from participating in cryptocurrency transactions or investments. The RBF acknowledges that it is not responsible for the aggressive marketing of these schemes or the risks they pose to investors.
Fijians are now advised to be more aware of the potential risks and understand that violating RBF regulations regarding cryptocurrencies may have serious consequences under the Exchange Control Act. As global discussions surrounding cryptocurrencies continue, the central bank of Fiji remains focused on maintaining the integrity of the country’s currency and ensuring the safety of its citizens. The RBF’s revelations highlight the importance for both institutional and individual investors to adhere to local financial laws and regulations.