The Reserve Bank of Fiji (RBF) has cautioned the public against utilizing cryptocurrency for payment or investment, contradicting the perceived stance of the Fijian prime minister on crypto. In fact, Fijian residents may even face potential criminal charges if they invest in cryptocurrency abroad using funds held within Fiji, according to the RBF’s release. This warning was apparently 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.
There were high hopes for the integration of Bitcoin (BTC) in Fiji after Sitiveni Rabuka, a well-known figure in Fiji’s political landscape, assumed the position of prime minister in December 2022. This optimism stemmed largely from the statements made by Tongan member of parliament and nobleman, Mata’i’ulua ‘i Fonuamotu, Lord Fusitu’a, who referred to Rabuka as “pro-Bitcoin” in a post on X (formerly known as Twitter) shortly after Rabuka’s election. Fusitu’a expressed his desire for “BTC Legal Tender Bills for the Pacific in 2023.”
Lord Fusitu’a further elaborated that Rabuka had requested multiple meetings with him to learn about the step-by-step process of implementing Bitcoin as legal tender in Fiji. When someone commented on Fusitu’a’s post, noting that Rabuka had not made any public statements regarding the use of Bitcoin, Fusitu’a replied, “I don’t think he’s been asked about it.”
Lord Fusitu’a had been a vocal advocate for the introduction of Bitcoin in 2022, to the extent of proposing the conversion of the national treasury to the cryptocurrency. However, these measures have yet to be implemented in the country.
The recent statement by the RBF aligns with the advice provided by the International Monetary Fund (IMF) regarding cryptocurrency. In a paper released in February, the IMF referred to cryptocurrencies as “inadequate replacements for means of payment, and they pose additional macroeconomic risks.”
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