The Managing Director, Nigeria Deposit Insurance Corporation
Umaru Ibrahim 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 the Speaker of the House of
Representatives, Hon. Femi Gbajabiamila at the National Assembly
Complex, in Abuja.
The Chairman of the Board of NDIC, Mrs. Ronke Sokefun, 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 the Director, Communications and Public
Affairs Unit, NDIC, Sunday Oluyemi, 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, the Speaker 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.
The Speaker assured that the House, under his leadership would
ensure that the most appropriate Committee is assigned to handle
the oversight functions of the Corporation.
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