Fiji Central Bank Issues Warning Against Cryptocurrency Use, Dampening Bitcoin Expectations

The Reserve Bank of Fiji (RBF) has cautioned against the use of cryptocurrencies for payments or investments, signaling a shift from the previously perceived stance of the Fijian prime minister on crypto adoption. The RBF issued a warning to the public, stating that Fijian residents could potentially face criminal charges for investing in cryptocurrency abroad using funds held in Fiji, amidst indications of individuals or entities promoting cryptocurrency investment schemes within the country. Despite earlier hopes for Bitcoin adoption in Fiji following the election of Prime Minister Sitiveni Rabuka in December 2022, fueled by statements from Tongan member of parliament Lord Fusitu’a labelling Rabuka as "pro-Bitcoin," the RBF's warning indicates a more cautious approach towards cryptocurrency adoption. This warning aligns with the advice of the International Monetary Fund (IMF), which highlighted the risks associated with cryptocurrencies and their limited suitability as means of payment in Pacific Island countries.