Nigerian Deposit Insurance Corporation Warns Against Crypto Dependency

The Nigeria Deposit Insurance coverage Company (NDIC), a federal insurance coverage overseer and security internet supplier, has issued a public warning about counting on cryptocurrency transactions in a press release on July 25.

In keeping with the press launch, managing director and CEO of NDIC Umaru Ibrahim stated that counting on cryptocurrencies could be very dangerous, as a result of they’re unregulated and unbacked by central banks in most monetary jurisdictions. 

Very similar to the US’s Federal Deposit Insurance coverage Company, the NDIC gives a security internet for depositors and goals to guard the banking system from instability attributable to financial institution runs or lack of confidence.

Home speaker notes want for crypto regulation

Ibrahim initially voiced his considerations throughout a courtesy name with the NDIC board and the Speaker of the Home of Representatives, in keeping with a report by the information outlet Ripple Nigeria on July 25.

Speaker Femi Gbajabiamila, voiced an eagerness to control cryptocurrencies and partake within the rising international crypto market, saying:

“The NDIC and different safety-net members within the nation should not be left behind within the adoption of acceptable regulatory framework to take care of the prevalence of cryptocurrencies within the international monetary area.”

As beforehand reported by Cointelegraph, Gbajabiamila additionally mentioned the distinction between the NDIC and the Central Financial institution of Nigeria. The speaker stated that the Home of Representatives would help NDIC in rising its statutory features, with out infringing upon the central financial institution’s area of obligations.

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