Key Takeaways:
- Contrasting Views on Cryptocurrency: Fiji’s Prime Minister, Sitiveni Rabuka, had shown initial openness to integrating Bitcoin into Fiji’s economy, which contrasts sharply with the Reserve Bank of Fiji’s recent warnings against using cryptocurrencies for payment or investment.
- Legal and Regulatory Warnings: The Reserve Bank of Fiji highlighted the legal risks and absence of licensed cryptocurrency investments or trading, advising the public against engaging with digital currency investment schemes.
- Influence of International Guidelines: The shift in stance by the Reserve Bank of Fiji aligns with the International Monetary Fund’s recommendations, which caution against adopting cryptocurrencies as legal tender due to potential macroeconomic risks.
Despite prior discussions by Fiji’s Prime Minister Sitiveni Rabuka about integrating Bitcoin into the Fijian economy, the Reserve Bank of Fiji (RBF) has recently advised the public against the use of cryptocurrencies for either payment or investment purposes.
This move starkly contrasts with the Prime Minister’s previously perceived stance on digital currencies.
JUST IN:
— WhaleFUD (@WhaleFUD) April 15, 2024
Fiji central bank warns against crypto use
According to an official statement, Fijian residents could face legal consequences for investing in cryptocurrencies with funds originating from Fiji.
The RBF’s warning appears to be a response to the active promotion of cryptocurrency investment schemes within the country.
“The Governor of the RBF, Mr Ariff Ali acknowledges that there are indications of persons or entities promoting cryptocurrency investment schemes in Fiji. These investment schemes are increasingly being promoted through various platforms including social media.” the bank’s press release stated.
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— Consensus Protocol (@ConsensusPro) April 15, 2024
1/ Fiji's Central Bank Warns Against Crypto: The Reserve Bank of Fiji has cautioned the public against using cryptocurrencies for payments or investments. Local residents could face criminal charges for investing in crypto abroad using funds… pic.twitter.com/DSN5bcQ8rg
It also confirmed that no licenses have been granted for cryptocurrency investments or trading in virtual assets.
The prospects for Bitcoin becoming a more significant part of Fiji’s financial landscape were initially high following the election of Rabuka in December 2022.
A new pro-#Bitcoin friendly Prime Minister in the South Pacific.☀️🌊🏝️
— Lord Fusitu'a (@LordFusitua) December 29, 2022
Fiji 🇫🇯‘s newly elected Prime Minister @slrabuka.
Let’s go 2 for 2 – BTC Legal Tender Bills for the Pacific in 2023 👊🏽💯🇹🇴🇫🇯
These expectations were fueled by comments from Tongan MP and nobleman, Lord Fusitu’a, who described Rabuka as “pro-Bitcoin” on social media platform X (formerly Twitter).
Lord Fusitu’a’s posts included optimistic predictions about the Pacific region adopting Bitcoin as legal tender in 2023.
Fiji's central bank has issued a warning against crypto investments promoted in the region, citing legal tender laws and potential penalties under local regulationshttps://t.co/08BxvON3aY
— crypto.news (@itscrypto_news) April 15, 2024
“Rabuka asked me to meet with him a number of times & show him step by step how Fiji can do bitcoin legal tender like Tonga.” Lord Fusitu’a shared, emphasizing the potential collaboration, although it was noted that Rabuka himself had not publicly confirmed these plans.
The shift in the RBF’s position aligns with recent guidance from the International Monetary Fund (IMF), which in February released a paper on digital currency use in Pacific Island nations, describing cryptocurrencies as “poor substitutes for means of payment” and highlighting their “additional macroeconomic risks.“
🚨The Reserve Bank of Fiji warned against the use of and investment in cryptocurrencies and virtual assets, noting potential criminal charges for residents investing abroad. pic.twitter.com/sDpoN5dk60
— CILLIONAIRE.COM (@cillionaire_com) April 16, 2024
As the debate continues, the future of cryptocurrency in Fiji remains uncertain, with the central bank standing firm on its cautionary stance against the burgeoning digital economy.
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