Summary
- Throughout the Pacific, attitudes vary toward crypto and blockchain, as well as regulatory approaches toward the development of digital assets and finance.
- The states, many of which are small islands, have widely differing capabilities, which dictate their interest in and speed of take-up, when it comes to crypto and blockchain development.
- Australia and New Zealand are influential, as both the region’s largest economies and donors to some nations. How they manage crypto and blockchain has some effect on the wider region’s attitudes and regulation.
- For more information about how crypto is being used in countries worldwide, visit our Crypto in Action page.
Regionwide overview of crypto development
The 14 Pacific Island Countries show very different attitudes toward crypto, ranging from highly restrictive to disinterested to pursuing it as part of state financial inclusion programming.
There are clear differences in the countries’ ability to embrace digital finance. Fiji, Samoa and Tonga lead in terms of digital transformation, followed by Papua New Guinea (PNG) and the Solomon Islands. Even where countries have policies in place, execution can be a challenge, reflecting issues like connectivity and internet penetration, topography and political stability.
The authorities on many of the islands appreciate that they don’t have the legislative oversight in place to properly help the sector develop. As such, some like Fiji, have taken a restrictive line toward crypto while they boost their financial sector’s capacity and capabilities.
Influencing the region more broadly are the developing digital asset frameworks of Australia and New Zealand, which in turn, suggest a more structured approach to crypto regulation will prevail over time.
To date, the contributions of donors have shaped the digitalization efforts of many of the Pacific Island Countries with the exception of Fiji and PNG, which are less dependent because of their size and levels of economic development.
As a result of donor oversight, particularly the IMF, many Pacific Island Countries have remained cautious about developing their digital finance and asset activities. The fund has stressed that robust frameworks that uphold strict anti-money laundering (AML) and counter-terrorism finance (CTF) are required to counter risks.
In general, there are very few local crypto owners. Where crypto usage registers higher, it’s typically as a result of the actions of a wealthy – often foreign – few, rather than wider interest among the local population.
It is, for example, estimated that 1% of Fijians own crypto, out of a population of almost 929,000. Similarly, when the Marshall Islands rolled out a welfare scheme in which it provided $200 to every citizen every quarter, just 12 islanders registered to have their payments made in crypto.
The drivers of interest in crypto and blockchain
Much of the interest in digital finance comes from practical and structural issues. Many citizens have limited access to banking and cross-border payment systems require modernization.
The region’s number of unbanked and underbanked individuals is high: figures are difficult to pinpoint, but in 2021, the Pacific Island Countries represented almost a quarter of the world’s unbanked population, with 80% of citizens lacking any access to finance.
Remittance costs are high. Tonga, for example, spends 45% of its GDP on remittances, accelerating the search for a more reasonable and efficient system.
There is a lot of interest in blockchain technology, often more so than cryptocurrencies. The ability to directly transfer funds between users without using traditional banking intermediaries is particularly attractive, reflecting the region’s geography and the limited nature of available banking services.
It also offers longer-term financial resilience, which is vitally important in a region facing significant risks from the climate crisis and a lack of opportunity to diversify economically.
Fiji – pursuing a strict, cautious approach
The authorities in Fiji have taken a cautious stance toward crypto, but have shown considerable interest in pursuing digital transformation. They have developed a National Digital Strategy (NDS) with a focus on creating a digital economy for regional growth.
Fiji recognizes the potential for digital technology, particularly blockchain, to address the physical challenges of providing services to more than 300 islands. A key challenge, however, is the poor rates of digital literacy, even among businesses.
The authorities have consistently explained that their prohibitive attitude toward crypto is designed to manage the sector’s risks until Fiji’s financial system is in a better position to manage them. In 2025, the authorities banned (as of August) virtual asset service providers (VASPs) as part of a wider anti-money laundering (AML) policy.
Historically, cryptocurrencies have not been recognized as legal tender and cannot be used to pay for goods and services. In addition, it is illegal for an individual or entity to “purchase or invest in cryptocurrencies and virtual assets from funds held in Fiji.”
No licenses have been granted or authorization given for individuals or entities to offer crypto investments or trade in virtual assets. Fijians can’t use funds held in Fiji to pay for crypto transactions overseas, and any Fijian looking to invest in crypto overseas must seek the approval of the central bank, the Reserve Bank of Fiji (RBF).
The authorities have not promulgated crypto-specific legislation, but instead amended the RBF Act (1983) and Exchange Control Act (1950) to cover the above. The Financial Transactions Reporting Act is also used to cover aspects of the crypto market, as is the Fijian Competition and Consumer Commission (2010).
Some have argued that because there isn’t any specific crypto legislation, that crypto falls into something of a gray area, but the authorities have universally maintained a strong stance and the regulatory bodies that oversee crypto developments in Fiji have upheld this.
In addition to the RBF, regulators include the Financial Intelligence Unit (FIU), which investigates financial crimes, including unregulated crypto trading. It is also the recipient of any suspicious transaction reports that financial institutions are required to log.
The Fijian Competition and Consumer Commission (FCCC) is responsible for consumer protection and enforcement of the FCCC Act (2010), covering any crypto-related pyramid schemes.
All institutions are required to establish an AML framework, know your customer (KYC) requirements, report any suspicious transactions, perform customer due diligence and perform AML checks. Reports are made to the FIU.
In 2026, the authorities began moves to introduce taxation on crypto assets. It was suggested that this was about bringing regulatory clarity to digital assets and legitimizing crypto as a viable investment class.
Among the changes were the introduction of clear capital gains treatment for digital assets, and the classification of crypto mining and staking as business income.
French Polynesia – moved on from early crypto schemes
The island state showed an interest in early crypto hub schemes. In the case of French Polynesia, the government and two private backers announced a floating special economic zone in 2017, which would have its own cryptocurrency, the Varyon (VAR). It had a completion date of 2022, but failed to develop after its memorandum of understanding expired.
Beyond this, crypto interest and local adoption have been muted. French Polynesia’s legal system is based on French civil law, albeit adapted to local conditions. In terms of crypto, the sector falls under the oversight of France’s regulators. As such, cryptocurrencies are legally recognized as digital assets, and their taxation largely mirrors France’s approach. No major crypto exchanges operate in French Polynesia, with access primarily through international exchanges.
Marshall Islands – an early crypto adopter
The Marshall Islands also showed early interest in crypto, passing the Sovereign Currency Act in 2018 to create its own virtual currency, the Sovereign or SOV, which was designed to serve as legal tender for citizens and businesses.
This was met with IMF warnings over the potential for its misuse, particularly money laundering. The idea was to use the SOV alongside the primary currency, the US dollar. Ultimately, in line with IMF advice, the Sovereign Currency Act was repealed in August 2025.
This has not stopped the country from continuing to explore blockchain use and digital currency options. It continues to expand the registry of decentralized autonomous organizations (DAOs) and pursue policy initiatives such as the world’s first sovereign US dollar-denominated digital bond, USDM1.
In November 2025, the authorities launched the world’s first universal basic income scheme to offer crypto as payment. Citizens were given the choice of having quarterly payments of $200 in either a stablecoin (USDM1) through a government-supported digital wallet or fiat currency.
In large part, the decision to offer a blockchain-based crypto alternative to the fiat was designed to address the authorities’ challenge of delivering money to hundreds of remote islands.
The use of USDM1 has been described as a “fiscal distribution program, not a currency initiative.” Each unit is issued against short-dated US treasuries held in trust, which are both “fully backed and legally segregated.”
In the event, a handful of citizens opted for the crypto option, with 60% choosing a bank account deposit and the rest asking for a cheque. This reflects the limited local interest in crypto as well as the lack of infrastructure to support it.
Connectivity is limited and often disrupted, pointing to a need to boost internet coverage and smartphone penetration before the sector can develop. Furthermore, the IMF continues to issue warnings about the authorities’ forays into digital payments, arguing that USDM1 is an “untested policy initiative” that could have “adverse macro-fiscal and financial integrity implications.”
Nauru – taking a proactive approach toward crypto
In June 2025, Nauru’s parliament passed legislation establishing a dedicated virtual asset regulatory authority. The Command Ridge Virtual Asset Authority (CRVAA) will license cryptocurrency exchanges, digital asset services, and other fintech operators. It will additionally be tasked with ensuring cybersecurity standards, monitoring financial transactions and enforcing compliance.
The legislation brings clarity to the sector, defining cryptocurrencies as commodities, not securities; excluding utility and payment tokens from contract status; and protecting governance and reward tokens from misclassification.
Nauru’s decision to introduce this licensing regulation is anticipatory. There are no exchanges operating from the country. Instead, the authorities are keen to put the framework in place, in line with FATF standards and recommendations for reasons of transparency and accountability.
Palau – seeking to boost financial inclusion
Cryptocurrency is legal in Palau and the authorities historically showed a generally supportive albeit hands-off approach to the crypto sector. In March 2019, however, the country’s Financial Institution Commission (FIC) called a temporary moratorium on crypto activity when a local crypto start-up falsely claimed to have the government’s support. The ban was due to remain in place until the authorities could implement a framework to govern the infant sector.
Palau spent several years investigating the creation of a stablecoin. According to the central bank, the primary reason would be to boost financial inclusion. Like several of the other Pacific Island Countries, Palau is home to a large number of small islands, making it physically difficult to carry out even basic banking tasks and offer services. At this stage, however, internet penetration remains low – approximately 42% of the population has no access – posing a fundamental challenge to digital payment solutions.
The Palau Stablecoin Program (PSP) launched in October 2021 when the finance ministry entered into talks with payment solution provider, Ripple, to identify clear retail use cases, workstreams and key volunteers. A design document was developed and delivered in September 2022, and deployed into the first half of 2023.
As part of the second phase of this program, the central bank and Ripple explored the feasibility of integrating a tokenized USD into the country’s financial infrastructure. According to the authorities, the goal was to “develop the framework for a convenient, cost-effective national payment ecosystem similar to PayPal and Alipay, tailored to the needs of all Palauans, especially the unbanked and underbanked.”
In July 2024, the finance ministry released a progress document in which it sought to clarify its work on the stablecoin program. Among the points raised was that it was not creating a cryptocurrency nor a global payment system, that the national payment service wouldn’t be available to everyone, and the tokenized dollar was not the same as bitcoin. The program hit a hiatus when the government failed to find a custodian bank for the scheme.
The Palau Digital Payment Service Bill (PDSB) has been submitted to Congress, the aim of which is to create a modern national payment system. As part of this, the finance ministry would issue tokenized dollars (on a 1:1 basis with the fiat currency, the US dollar) backed by reserves that the ministry would manage. To progress, the bill would need to be approved, supporting regulations developed, and a partnership with a custodian bank agreed. To date, this has not happened.
The IMF has also issued a warning about the use of tokenized dollars. In a report about the modernization of the PIC’s financial system it highlighted factors that could limit their uptake including the lack of clarity of the cost-sharing model, a local preference for cash, poor buy-in from local banks, and an inadequate IT infrastructure. It also warned that robust regulation was required, or tokenized dollars could “attract illicit activities and pose considerable AML/CFT and associated financial integrity risks.”
The authorities have been addressing these concerns. In October 2025, the Senate approved the Cybersecurity Act (Senate Bill No. 12-9, SD1), designed to put in place a comprehensive national frameworkfor digital security and data protection.
Papua New Guinea – interested in financial inclusion without the risks
Cryptocurrencies are not legal tender in PNG, and the Bank of Papua New Guinea (BPNG) (central bank) has issued warnings about crypto usage.
The authorities are, however, interested in the potential for digital finance to boost financial inclusion, and have been researching the benefits of a CBDC.
In January 2025, BPNG governor, Elizabeth Genia, gave a speech about the proof-of-concept that the bank had been developing with partners like the Japan International Cooperation Agency (JICA), for a CBDC.
She said that the rationale for possible development came from the “rapid advancements in digital financial technologies globally, which have opened up opportunities to enhance payment systems and improve financial inclusion.”
Governor Genia added that as the country’s banks and financial institutions pursued digital transformation, the authorities’ job was to ensure that the financial infrastructure was able to accommodate the changes.
In support of a CBDC were the potential to reduce reliance on physical cash, while lowering costs and boosting efficiency; strengthening security using blockchain technology; and promoting financial inclusion.
Governor Genia has stressed the need to engage more financial institutions and expand research into cross-border transactions, as well as addressing legal and regulatory issues before the bank would consider widening the roll out.
In September 2025, at an event marking the country’s 50th anniversary of independence, the National Executive Council (NEC) outlined five blockchain and crypto projects as part of the Medium-Term Development Plan and Vision 2050.
Among these were: the National AI and Cryptocurrency Development Project, designed to help develop secure and inclusive financial technology systems; a plan to redesign and reissue the nation’s physical (and possibly digital) currency; the creation of a national digital exchange platform for crypto and tokenized assets; a blockchain payment system for everyday transactions; and cybersecurity and blockchain integration.
Samoa – maintaining a cautious stance
The authorities show interest in blockchain, particularly as a potential tool to help improve financial inclusion, and have maintained a cautious stance on digital currency.
Since 2017, the Central Bank of Samoa has, however, issued a number of warnings about cryptocurrencies, reminding citizens that they are not legal tender and should be regarded as high-risk assets.
Some crypto exchanges are reportedly incorporated into Samoa, but in line with the country’s AML legislation, all crypto providers have to obtain approval to operate.
The authorities have been working with their counterparts in New Zealand and Tonga to tackle a series of scams, which have emerged through social media.
The Solomon Islands – seeking a pragmatic response to gaps in financial infrastructure
The Central Bank of the Solomon Islands (CBSI)’s position is that cryptocurrencies are not currencies, and are not issued or regulated by the bank. They are not regarded as legal tender, and are considered “risky and speculative.”
This position has not, however, stopped the authorities from pursuing digital payments infrastructure, with the authorities keen to transition away from a completely cash-based economy. There is a need to address financial infrastructure shortfalls, and digital currencies are regarded as part of this strategy.
Reflecting this, in November 2023, the central bank launched a digital currency, Bokolo Cash. As part of the proof-of-concept pilot, peer-to-peer transactions and retail payments in the capital were authorized. The project was a first step in introducing a CBDC, acting as a digital representation of the fiat currency, the Solomon Islands dollar.
Tonga – interest slowed since advocate’s death
At one point, Tonga was regarded as having the potential to be a leading crypto state. Prominent parliamentarian, Lord Fusitu’a, was an ardent proponent of cryptocurrencies, and in 2021 began publicizing his intention to bring a bitcoin bill before parliament in May 2022. His aim was to make bitcoin legal tender alongside the fiat currency, a move that he said would reduce the country’s very high remittance costs.
In the event, no bill passed through parliament, and following Lord Fusitu’a’s death in 2024, there has been little interest in taking the idea further.
His attitude was largely at odds with the more mainstream political view. In June 2021, amid speculation that bitcoin could become legal tender, the National Reserve Bank of Tonga (NRBT) (central bank) issued a release in which it refuted this, pointed out that anyone offering investments in bitcoin in the country would need a license and that no licenses for this had been issued, and denied there were any plans to use the country’s foreign exchange reserves for cryptocurrency investment.
The bank also revealed that exploratory plans were under way into a CBDC, but stressed that these were in the initial phase.
Talk of developing the crypto sector has quietened, and more recently, the authorities have been working with their New Zealand and Samoan counterparts to try to stop a crypto-related pyramid scheme, which is being promoted through social media and has spread from Tongan communities in the US to Tonga itself, and latterly Tongan communities in New Zealand.
Vanuatu – courting foreign crypto
Vanuatu has, certainly on the face of things, courted foreign crypto. Several years ago, reports emerged of the creation of Satoshi island, an 800-acre crypto paradise founded wholly on the basis of developing and serving a community of crypto entrepreneurs.
This wasn’t the first time Vanuatu’s crypto designs hit the headlines. In 2017, it was widely but inaccurately reported that the authorities would allow foreigners to use crypto to buy citizenship. It is possible to pay a fee to obtain citizenship as part of the country’s “citizenship investment program” but this is paid in US dollars rather than crypto.
This doesn’t mean, however, that the authorities are not interested in developing a crypto and blockchain sector.
Vanuatu first defined the term “digital asset” in 2021 as part of the Financial Dealers Licensing (Amendment) Act No. 9, and the authorities allow their ownership, distribution and resale.
In March 2025, parliament passed the Virtual Asset Service Provider (VASP) Act. This not only cemented the definition of virtual assets, but also established the legal framework for licensing and reporting, initial coin offerings (ICOs), non-fungible token (NFT) marketplaces, digital asset custody providers, and a fintech sandbox.
This marked the culmination of a significant amount of work on the part of the government, Vanuatu Financial Services Commission (VFSC), which has become the licensing authority, the Distributed Ledger Technology Taskforce Committee, and the Virtual Assets Task Force Committee.
The VFSC was given the powers to enforce the Financial Action Task Force (FATF)’s AML, CTF and travel rule standards on digital asset firms operating in Vanuatu.
This marks a significant regulatory step for the PIC, establishing a stable framework that is designed in line with international norms. According to the VFSC, the law “opens numerous opportunities for Vanuatu, both economically and socially, while ensuring that international standards are adhered to.”
Legislative developments in crypto and blockchain
2017
At the start of the year, the authorities in French Polynesia announced an agreement with the Seasteading Institute and Blue Frontiers to create a floating crypto city.
In June, the Central Bank of Samoa issued a warning to be “very cautious and diligent” with regards to digital currency investments and get-rich-quick schemes.
In October, it was inaccurately reported that Vanuatu would allow people to use crypto to pay the fee to obtain citizenship.
The same month, the Reserve Bank of Vanuatu (RBV) advised corporates, financial institutions, public enterprises, and individuals that they refrain from crypto trading.
2018
The Marshall Islands passed the Sovereign Currency Act (2018) in February, legalizing crypto as a payment option.
PNG began exploring the potential of blockchain and its uses.
In May, the Varyon (VAR) token was proposed as the native cryptocurrency for a special economic zone in French Polynesia.
2019
In March, Palau’s Financial Institution Commission (FIC) called a moratorium on crypto activity when a local crypto start-up falsely claimed to have the government’s support.
In October, the Solomon Islands’ central bank issued an advisory about cryptocurrencies, stating that they were not regarded as legal tender.
The following month, the NRBT held a two-day roadshow highlighting how its regulatory sandbox operated and its potential benefits to digital finance services in Tonga.
2021
The Fijian authorities warned against unregulated trading scams.
Vanuatu passed the Financial Dealers Licencing (Amendment) Act No. 9 of 2021, thereby defining “digital assets.”
The Palau Stablecoin project got under way in October.
Lord Fusitu’a heightened interest during the year in the idea of making bitcoin legal tender in Tonga, announcing his intention to bring a bitcoin bill before parliament in May 2022.
2022
In January, hundreds of bitcoin donations were reportedly made to a relief fund established to support recovery efforts in Tonga following a volcanic eruption.
A design document for the Palau Stablecoin project was delivered in September, with a pilot launch planned for December.
2023
In November, the central bank of the Solomon Islands launched a digital currency, Bokolo Cash.
In December, Palau’s finance ministry released a report into the first phase of its stablecoin program.
2024
In April, the Reserve Bank of Fiji issued an advisory, warning the public that cryptocurrencies were not recognized as legal tender, and therefore could not be used for the payments of goods and services. The warning followed the publication of an IMF paper advising against crypto adoption.
2025
In March, Vanuatu’s parliament passed the Virtual Asset Service Provider (VASP) Act.
In June, Nauru’s parliament passed legislation establishing a dedicated virtual asset regulatory authority.
In August, the RBF announced amendments to the Reserve Bank of Fiji Act, 19831, banning VASPs.
The same month, the Marshall Islands repealed its Sovereign Currency Act.
In September, Fiji’s National Anti-Money Laundering Council reaffirmed the ban on VASPs, citing financial stability and national security concerns for doing so.
Also in September, PNG marked the 50th anniversary of its independence, during which its prime minister spoke of digital transformation as a cornerstone of its progress.
The following month, Palau’s Senate approved the Cybersecurity Act (Senate Bill No. 12-9, SD1), designed to put in place a framework for digital security and data protection.
In November, the Marshall Islands rolled out its universal basic income program, offering citizens the opportunity to receive their allowance in crypto.
2026
In April, PNG’s central bank issued a warning about using crypto. Governor Genia said that “BPNG does not license any virtual asset service providers, cryptocurrency-based investment platforms, or fast-money schemes.”
Outlook driven by caution and technological utility
The growing shift toward regulation is expected to continue. This remains a region attracted to the potential utility of blockchain, primarily as a means to support financial capacity and capability. Reflecting this, the focus will continue to be on using regulated applications and state-directed digital payment options to address issues like high remittance costs and financial inclusion.
The region will also continue to develop solutions and products on its own terms. To enjoy broad acceptance, there is a sense that ways must be found to ensure digital transformation develops alongside long-standing cultural frameworks, particularly in areas like trust and identity.
