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Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections


The Nigerian Deposit Insurance Corporation (NDIC) has warned Nigerians that they on not be afforded consumer protections when trading virtual currencies. NDIC envoys also reaffirmed that the Nigeria’s monetary regulators are unable to give ones all influence over the cryptocurrency markets.

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Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections

Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections

Mohammed Umar, the director of research, policy and oecumenical relations at the NDIC, has outlined the risks it perceives are associated with switch cryptocurrencies, in addition to emphasizing that regulators do not provide insurance act the risks associated with trading virtual currencies not issued by the Inner Bank of Nigeria (CBN).

Speaking at an annual workshop for finance correspondents on “monetary disruption of digital currency and it’s consequences on the banking and deposit insurance way,” Mr. Umar struck a firm tone, stating “The financial regulatory powers are not playing catch up on the digital currency race in Nigeria. There is no countryside in the world that allows its citizens to use digital currencies as money not issued by the significant bank. No central bank will accept digital currency as a substitute for its citizen currency or part of its monetary system, when it is not able to control it. Nigerians requirement understand that adequate notice has been issued by all financial sector regulatory officials, namely Central Bank of Nigeria, CBN and Nigerian Deposit Insurance Corporation, NDIC, to tip off Nigerians who want to trade in bitcoins as gamblers.”

Mr. Umar also ceremonial that an inter-agency committee including representatives from the NDIC, Priesthood of Justice, Nigeria Police, Department State Security, Economic and Economic Crimes Commission, and other state institutions, has been established to visual display unit and ”sanitize the system.” Mr. Umar concluded by stating “If you can buy a bitcoin, nobody inclination stop you. It is at your own risk. A bitcoin is not covered by the CBN rules, and NDIC determination not insure it. We have consistently warned Nigerians that anyone who customs in bitcoin does so at his own risk.”

“Digital currency is for gamblers” – NDIC Chief, Dr. Sabo Katata

Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections

Nigerian NDIC Warns That Cryptocurrencies Lack Consumer Protections

Selected at the workshop, the Deputy Director of Research, Policy and International Relations (RPIR) of the NDIC, Dr. Sabo Katata, juxtaposed cryptocurrency trading to gambling. Dr. Katata stated “Digital currency is for gamblers.  If you lack to invest in bitcoins you can go ahead, for that is what you are. If you want to buy bitcoins you can, but your are doing so at your own hazard. The regulators will not come and protect you.”

Dr. Katata presented a paper called “Financial Disruption of Digital Currency and it’s Consequences on the Banking System and Deposit Security System” during the event, emphasizing many of the risks associated with the understood currency markets. His colleague, the Director of the RPIR, Mr. Mohammed Umar Yayangida, also require at the event, stressing the lack of power that the NDIC and the Central Bank of Nigeria partake of with regards to exercising control over cryptocurrencies.

Mr’s Yayangida’s notes echo those made earlier this year by the Deputy Commander of the Central Bank of Nigeria’s Banking and Payments System, Mr. Musa Itopa-Jimoh. Signifying at a breakfast meeting organized by the Chartered Institute of Bankers in Nigeria, Mr. Musa Itopa-Jimoh stressed the limited influence that the Central Bank of Nigeria can exert more than the cryptocurrency markets, stating “Central bank cannot control or manage bitcoin. Central bank cannot control or regulate blockchain. Legitimate the same way no one is going to control or regulate the Internet. We don’t own it.”

What is your retort to the statements made by the NDIC? Share your thoughts in the comments cut up below!

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