The Reserve Bank of Fiji, the central bank of the Pacific island state, has issued a public notice stating that cryptocurrencies and virtual assets such as Bitcoin, Ethereum, and Tether are not recognized as legal tender in the country. According to the bank, it is illegal for individuals to purchase or invest in cryptocurrencies using funds held in Fiji.
The bank explained that, based on the RBF Act (1983), the only 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 country’s currency since 1969, as well as from 1867 to 1873.
Violating the central bank’s stance on cryptocurrencies may result in punishment under the RBF Act (1983) and the Exchange Control Act (1950). While not all Pacific Island countries officially utilize private cryptocurrencies or stablecoins, Fiji, Palau, Solomon Islands, and Vanuatu have been considering the possibility of introducing central bank digital currencies (CBDCs). Cash remains the primary payment method for most Fijians in their daily transactions.
The Governor of the Reserve Bank of Fiji, Ariff Ali, revealed that some businesses are promoting cryptocurrency investment schemes in Fiji through various platforms, including social media. Ali emphasized that the central bank has not granted a license or authorization to anyone to offer cryptocurrency investments or trade virtual assets in Fiji. Therefore, the bank advises the public of Fiji to refrain from participating in cryptocurrency investment or trading schemes.
In 2023, it was reported that over 40 countries had made significant progress in developing regulations and legislation for the crypto sector, indicating a growing trend of wider cryptocurrency adoption on a global scale. According to PwC’s 2023 report, many countries have implemented new regulations and laws specifically targeting the cryptocurrency sector.
[Global Index Score Source: Chainalysis]