The Reserve Bank of Fiji (RBF) has cautioned the public against the use of cryptocurrency for payments or investments, marking a shift in the Fijian prime minister’s stance on crypto. The RBF warned that Fijian residents may face criminal charges for investing in cryptocurrency abroad with funds held in Fiji. The warning was prompted by the promotion of cryptocurrency within the country. The RBF emphasized that it has not authorized any individual or entity to offer cryptocurrency investments or engage in virtual asset trading. Expectations were high for the adoption of Bitcoin (BTC) in Fiji following the appointment of Sitiveni Rabuka as prime minister in December 2022. This was largely due to statements made by Tongan member of parliament and nobleman Lord Fusitu’a, who referred to Rabuka as “pro-Bitcoin” in a post on Twitter. Lord Fusitu’a further revealed that Rabuka had expressed interest in exploring how Fiji could implement Bitcoin as legal tender, but there have been no public statements from Rabuka on the matter. Lord Fusitu’a was a strong advocate for the introduction of Bitcoin in 2022, even proposing the conversion of the national treasury to the cryptocurrency, although these measures have not been implemented. The RBF’s recent statement aligns with the advice provided by the International Monetary Fund (IMF) on cryptocurrency. In a paper released in February, the IMF referred to cryptocurrencies as “inadequate substitutes for means of payment, and they pose additional macroeconomic risks.”
Fiji's central bank dashes Bitcoin hopes with cautionary message against cryptocurrency adoption