Written by Sarah NEGEDU

NDIC warns against crypto-currencies

The Nigeria Deposit Insurance Corporation, NDIC, has asked Nigerians to exercise caution in the adoption of crypto-currencies as their preferred mode of financial transactions, owing to the risks involved in the mode of transaction.


The Managing Director and Chief Executive Officer of the corporation, Umaru Ibrahim, warned that while various forms of digital currencies currently in operation have their positive and negative attributes, those who patronize them risk losing their savings.

He said the warning became necessary because crypto -currencies are largely unregulated and without the backing from the traditional central Banks in almost all financial jurisdictions.

Ibrahim gave the advice during a courtesy visit by the board and management of the corporation to the Speaker of the House of Representatives, Hon. Femi Gbajabiamila, in his office at the National Assembly Complex, in Abuja.

Earlier, in her opening remarks, the chairman of the board of the corporation, Mrs. Ronke Sokefun, informed the Speaker that the NDIC remained a critical player in the Nigerian financial safety net that had contributed immensely to the growth and stability of the nation’s financial stability in the 30 years of its operations using best practices.

She solicited the assistance of the House in the passage of the NDIC Act Amendment Bill currently before the National Assembly.

According to a statement by the Director, Communications and Public Affairs Unit, NDIC, Sunday Oluyemi, the NDIC is the first public sector institution in Nigeria to be awarded three International Standard Organisation certifications simultaneously by the British Standards Institute in view of its result-oriented system, processes and procedures.

In his response, the Speaker commended NDIC on the visit, describing it as a right step towards fostering harmonious working relationship with agencies in the executive arm of government.

On the issue of crypto-currency, he noted that as the entire world currently exploited ways of mainstreaming its use into the global financial landscape, NDIC and other safety-net participants in the country must not be left behind in the adoption of appropriate regulatory framework to deal with the prevalence of crypto currencies in the global financial space.


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