NDIC warns about risks of trading with Bitcoin, others

NDIC warns about risks of trading with Bitcoin, others

The Nigeria Deposit Insurance Corporation (NDIC) has said Nigerians who use Bitcoins and other digital currencies as means of payment, commercial transaction and online investment do so at their own risk as such currencies are not insured by the corporation.

Umaru Ibrahim, the Managing Director of NDIC, recently made this known at the 12th Abuja International Trade Fair.

Ibrahim said neither NDIC nor the CBN recognised these digital currencies and that they were only accepted by legal persons as a form of transferred payment.

He said that the currencies were issued by private developers and dominated in units and accounts not necessarily attached to a fiat currency, and that popular digital currencies such as Bitcoin, Ethereum, Ripple, Litecoin, and Etherium classic were not issued or managed by any sovereign authority in Nigeria.

“In view of the growing popularity which the phenomenon is gaining in Nigeria, it has become important to state that digital currencies are not authorised by the Central Bank of Nigeria and they are not insured by NDIC,” he warned.

The NDIC boss reiterated the corporation’s collaboration with CBN in monitoring the emerging digital and virtual currencies operations and studying its financial implications for the financial system, as well as designing policies that would protect the economy from any negative effects such invention could bring.

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