Fiji's Central Bank Cautions Public Against Cryptocurrency Use and Investment
Summary:
Fiji's central bank, the Reserve Bank of Fiji (RBF), has issued a public warning against cryptocurrency use and investment, diverging from the Prime Minister's implied endorsement. The warning comes amidst a rise in entities and individuals promoting crypto investments in the country, particularly through social media. RBF Government, Mr Ariff Ali, clarified that no permissions have been given to any entity for crypto investments or virtual asset trading. Notably, the RBF's stance aligns with the International Monetary Fund's view of cryptocurrencies as poor payment substitutes posing significant macroeconomic risks.
The central banking institution of Fiji, the Reserve Bank of Fiji (RBF), has issued a stern notice to citizens, cautioning them against the use or investment in cryptocurrencies. This diverges from the seeming endorsement previously hinted by the Prime Minister. Individuals living in Fiji could even encounter legal troubles for investing in overseas crypto, originating from funds within Fiji, the announcement also anticipates. The underlying reason for this advisory is the growing promotion of digital currency across the nation.
The RBF governor, Mr. Ariff Ali, states that there seems to be a rise in entities and individuals advertising cryptos through investment platforms, particularly on social media. The central bank of Fiji, thus far, has not granted any authorization to any entity or individual to participate in crypto investments or virtual asset trading, the statement concludes.
When Sitiveni Rabuka assumed the role of Prime Minister in Fiji in December 2022, Bitcoin adoption anticipation soared, primarily driven by the endorsement of Tonga's Member of Parliament and Nobleman, Mata'i'ulua 'i Fonuamotu, fondly known as Lord Fusitu’a. He portrayed Rabuka as a Bitcoin enthusiast in a post on X, formerly Twitter, after Rabuka's electoral win. Lord Fusitu’a was enthusiastic about the potential integration of Bitcoin into the economy, even proposing to shift the national treasury to the digital currency. However, such measures have yet to be implemented.
The recent proclamation from the RBF aligns with the International Monetary Fund's (IMF) advisory on cryptocurrency usage. The IMF labeled digital currencies as "poor substitutes for payment methods, implying significant macroeconomic risks," in a report focusing on digital money use in Pacific Island nations, published earlier this February.
Published At
4/15/2024 8:16:08 PM
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