The Nigeria Deposit Insurance Corporation (NDIC) has cautioned Nigerians to beware of trading in bitcoins and crypto-currencies, warning that they are neither issued by the Central Bank of Nigeria (CBN) nor insured by NDIC.
The Managing Director/Chief Executive of NDIC, Alhaji Umaru Ibrahim, who disclosed this said that persons who transact in digital currencies or ponzi schemes are getting themselves involved in risks which cannot be mitigated or covered by the Corporation, adding that it is better to steer clear of such businesses to avoid complete loss of investments.
The MD/CEO, represented by the director, Insurance and Surveillance Department, Alhaji Mohammed Umar, while offering the advise during it’s special day at the ongoing 39th Kaduna International Trade Fair, said that unlike other currencies issued by CBN, there is no digital currency guaranteed by the apex bank since it is not a legal tender.
He said that there are over 1,000 types of bitcoin globally.
“Digital currencies do not belong to the category of currency or coins issues by CBN or a Central Bank of any country, digital currencies are not backed by any physical commodity such as gold. Digital currencies are not deposits or instruments authorised by the CBN, therefore they are not insured by NDIC,” the MD said.