The Reserve Bank of Fiji (RBF) has issued a stern warning against crypto investments being promoted in the region, citing legal tender laws and potential penalties under local regulations.
In a recent press release on Apr. 15, the central bank emphasized that popular cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are not recognized as legal tender in Fiji and cannot be used for payments of goods and services, as per local rules.
Governor Ariff Ali of the Reserve Bank of Fiji also expressed concern about the increasing promotion of crypto investment schemes in the region, stating that the RBF has not authorized any individual or entity to offer cryptocurrency investments or trade in virtual assets in Fiji.
Furthermore, the central bank reiterated that it is illegal for individuals or entities to use funds held in Fiji to purchase or invest in crypto, warning that such activities may result in penalties.
While there were reports in July 2023 suggesting that the central bank was exploring the use of digital currency in Fiji, no concrete decisions regarding crypto legalization have been made since then.
In late December 2023, there were reports of collaboration between the Reserve Bank of Fiji and the National Bank of Cambodia to enhance the cross-border payment network using central bank digital currencies (CBDCs). However, significant developments on this matter have yet to be seen.
The central bank’s stance on crypto investments remains cautious, with a focus on ensuring compliance with local regulations and protecting investors from potential risks.