“You risk losing your savings,” NDIC boss cautions Nigerians who adopt cryptocurrencies

Umaru Ibrahim, the managing director, Nigeria Deposit Insurance Corporation on Thursday called on Nigerians to exercise caution in the adoption of cryptocurrencies as their preferred mode of financial transactions.

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.

He said the warning became imperative because cryptocurrencies are largely unregulated and without the backing of the traditional Central Banks in almost all financial jurisdictions.

The NDIC boss said this during a courtesy visit by the board and management of the Corporation to Femi Gbajabiamila, speaker of the house of representatives,  at the national assembly complex, in Abuja.

Ronke Sokefun, the chairman of the board of NDIC, told the speaker that the NDIC remained a critical player in the Nigerian financial safety net.

He explained that the NDIC through its interventions had contributed immensely to the growth and stability of the nation’s financial stability in the 30 years of its operations using best practices.

In a statement from  Sunday Oluyemi, the director, communications and public affairs unit, NDIC, she said that the NDIC is the first public sector institution in Nigeria to be awarded three International Standard Organization certifications simultaneously by the British Standards Institute in view of its result-oriented system, processes and procedures.

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

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.

On the issue of cryptocurrency, he noted that as the global economy is currently exploiting ways of adopting it into the global financial landscape, NDIC and other financial sector regulators in the country must not be left behind in the adoption of appropriate regulatory framework.

He said the adoption of a regulatory framework for cryptocurrency would help to deal with its challenges in the global financial space.

Gbajabiamila assured that the House, under his leadership would ensure that the most appropriate committee is assigned to handle the oversight functions of the NDIC.