NDIC cautions Nigerians on adoption of cryptocurrencies

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Stack of cryptocurrencies.

Nigeria Deposit Insurance Corporation (NDIC) has advised Nigerians to exercise maximum caution in the adoption of cryptocurrencies as their preferred mode of financial transactions.

Managing Director and Chief Executive Officer, NDIC, Umaru Ibrahim, gave the advice during a courtesy call by the board and management of the Corporation on the Speaker of the Federal House of Representatives, Hon. Femi Gbajabiamila, in his office at the National Assembly Complex, in Abuja.

He 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 because the medium is largely unregulated and without the backing or support from the traditional Central Banks in almost all financial jurisdictions.

Earlier, in her opening remarks, Chairman, Board of the Corporation, Mrs Ronke Sokefun, said 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.

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

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 cryptocurrency, 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 cryptocurrencies in the global financial space.

Suzan O