Fiji’s central bank dampens Bitcoin optimism with cautionary note on cryptocurrency usage

The Reserve Bank of Fiji (RBF) has cautioned the public against utilizing cryptocurrency for transactions or investments. This marks a change in the perceived stance of the Fijian prime minister on crypto. Furthermore, Fijian residents may face potential legal consequences for investing in cryptocurrency abroad using funds held in Fiji. The warning was reportedly prompted by the promotion of cryptocurrency within the country. The RBF emphasized that it has not granted any licenses to individuals or entities to offer cryptocurrency investments or engage in virtual asset trading.
The prospects for Bitcoin (BTC) adoption in Fiji appeared promising when Sitiveni Rabuka, a prominent figure in Fiji’s political landscape, became 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 Twitter) shortly after Rabuka’s election. Lord Fusitu’a stated, “Let’s go 2 for 2 – BTC Legal Tender Bills for the Pacific in 2023.”
Lord Fusitu’a further revealed that Rabuka had requested multiple meetings to learn about the process of implementing Bitcoin as legal tender in Fiji. Responding to a comment on his post, Lord Fusitu’a mentioned that Rabuka had not publicly addressed the use of Bitcoin and speculated that he may not have been asked about it.
Lord Fusitu’a was a vocal advocate for the introduction of Bitcoin in 2022, even proposing the conversion of the national treasury to the cryptocurrency. However, these measures have not been implemented in the country thus far.
The recent statement from the RBF aligns with the recommendations of the International Monetary Fund (IMF) regarding cryptocurrency. In February, the IMF published a paper on the use of digital currency in Pacific Island nations, stating that cryptocurrencies are inadequate substitutes for traditional forms of payment and carry additional macroeconomic risks.
In other news, crypto enthusiasts have displayed a keen interest in micronations and seasteading.