Cryptocurrency Users Risk Losing Their Savings—NDIC

Dipo Olowookere

Nigerians have again been advised to exercise maximum caution in the adoption of crypto-currencies as their preferred mode of financial transactions.

Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr Umaru Ibrahim, gave this warning when he led the agency to Speaker of the House of Representatives, Mr Femi Gbajabiamila, in his office at the National Assembly Complex, in Abuja last week.

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 was largely unregulated and without the backing or support from the traditional Central Banks in almost all financial jurisdictions.

Earlier, in her opening remarks, Chairman of NDIC, Mrs Ronke Sokefun, informed the Speaker that the commission 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 added that recently the NDIC became the first public sector institution in Nigeria to be awarded three International Standard Organization (ISO) certifications simultaneously by the British Standards Institute (BSI) in view of its result oriented system, processes and procedures.

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 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.

Mr Gbajabiamila said only recently, there was a meeting of world leaders in Osaka, Japan to deliberate on the subject.

Responding to a specific request from the team, the lawmaker assured that the lower chamber of the parliament, under his leadership, will ensure that the most appropriate committee was assigned to handle the oversight functions of the corporation.