The Central Bank of Fiji has issued a warning against the use of cryptocurrencies for payment or investment, risking criminal consequences for residents investing abroad with local funds.
Warnings from the Fiji Islands on Bitcoin and Crypto
Fiji residents could even face criminal charges if they invest abroad in crypto with ‘funds held in Fiji’. The Central Bank’s warning was prompted by the promotion of cryptocurrencies observed in the country:
The Governor of the Central Bank, Mr. Ariff Ali, acknowledges that there is evidence of individuals or entities promoting cryptocurrency investment schemes in Fiji. These investment schemes are increasingly being promoted through various platforms, including social media.
The Central Bank also clarified that no individual or entity has been authorized to offer cryptocurrency investments or trade virtual assets in the country.
Disappointed Hopes for Bitcoin Adoption
Hopes were high for the adoption of Bitcoin in Fiji following the election of Sitiveni Rabuka as Prime Minister in December 2022. These expectations were largely due to the statements made by Mata’i’ulua ‘i Fonuamotu, Lord Fusitu’a, a member of parliament and Tongan noble, who referred to Rabuka as ‘pro-Bitcoin’ in a publication on X (formerly Twitter) shortly after Rabuka’s election.
Let’s go for 2 out of 2 – Bills on Bitcoin as legal tender for the Pacific in 2023.
Lord Fusitu’a
Lord Fusitu’a explained that Rabuka ‘asked me to meet with him several times & show him step by step how Fiji can adopt Bitcoin as legal tender, just like Tonga’. A comment on Fusitu’a’s publication noted that Rabuka had made no public statements about the use of Bitcoin. ‘I don’t think he was asked about it,’ Lord Fusitu’a replied.
Lord Fusitu’a was a strong advocate for the introduction of Bitcoin in 2022, even proposing the conversion of the national treasury into the cryptocurrency. However, these measures have not yet been implemented in the country.
RBF’s Position and IMF’s Opinion
The new statement from the Central Bank aligns with the advice of the International Monetary Fund (IMF) regarding crypto. The IMF published a document in February on the use of digital currency in Pacific island countries, in which it referred to cryptocurrencies as ‘poor substitutes for means of payment and carriers of additional macroeconomic risks’.
