The Nigeria Deposit Insurance Corporation (NDIC) has cautioned investors and traders in digital currencies to be wary since such currencies are neither authorised by the Central Bank of Nigeria (CBN) nor insured by it.
NDIC stated that although digital currencies such as bitcoin, ethereum, ripple and litecoin, among others, are recognised by private subscribers and accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically, they are highly vulnerable to fraudulent practices and illicit transfer of funds.
While speaking at the special day of the NDIC at the 12th Abuja international trade fair with the theme: 'Returning Nigeria to the Path of Sufficiency Through Non-oil Exports', the NDIC Managing Director /Chief Executive, Alhaji Umaru Ibrahim, who was represented by the Director of Procurement, Sani Magaji, stated that digital currencies are growing in popularity.
With this phenomenon in Nigeria, he noted that it had become important to state that digital currencies are not authorised by the CBN and also not insured by the NDIC, adding that for the avoidance of doubt, any person or groups of persons who invest or trade in them were doing so at their own risks.
The NDIC, he said, had been participating in major trade fairs across the country since 2008 not only to showcase its landmark achievements but also to enhance public awareness on its core mandate of protecting bank deposits as well as present its contributions to financial system stability.
The NDIC, he said, had been participating in major trade fairs across the country since 2008 not only to showcase its landmark achievements but also to enhance public awareness on its core mandate of protecting bank deposits as well as present its contributions to financial system stability.
He added that the corporation also uses trade fair platforms to promote financial literacy and financial inclusion among both the banked and unbanked segments of the population to appreciate the essence of imbibing the saving culture, especially given that NDIC is responsible for protecting such deposits in the banking system.
Ibrahim revealed that in a bid to address the increasing customer patronage and huge deposit base, the corporation had over the years progressively increased its Maximum Deposit Insurance Coverage (MDIC) per depositor per bank to protect depositors in the unlikely event of bank failure as well as to deepen public confidence in the banking sector.
The coverage, he said, has risen from N50,000 naira in 1989 to N500,000 per depositor per deposit money bank (DMB) and non-interest banking institutions (NIBIs) .
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