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NDIC calls for regulation of cryptocurrencies

Jul 26, 2019
The Nigeria Deposit Insurance Corporation (NDIC) has advised Nigerians to exercise maximum caution in the adoption of cryptocurrencies as their preferred mode of financial transactions.
A statement issued on Thursday by the NDIC quoted the Managing Director, Umaru Ibrahim, as saying that those who patronize digital currencies risk losing their savings.
Ibrahim made this statement during a courtesy visit with members of the board and management of the corporation to the Speaker of the House of Representatives, Femi Gbajabiamila, at the National Assembly Complex in Abuja.
According to the NDIC boss, the warning became imperative as cryptocurrencies are largely unregulated and without the backing of the traditional Central Banks in almost all financial jurisdictions.
In his response, Gbajabiamila commended NDIC on the visit, describing it as a right step towards fostering a harmonious working relationship with agencies in the executive arm of government.
The Speaker also called for appropriate regulatory framework to guide the use of cryptocurrency in the country.
He noted that the “entire world is exploring ways of mainstreaming cryptocurrencies into the global financial landscape.”
Gbajabiamila added that only recently, there was a meeting of world leaders in Osaka, Japan, to deliberate on the subject.
“The 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,” he said.
The speaker assured that the House, under his leadership, would ensure that the appropriate committee was assigned to handle the oversight functions of the NDIC.