Digital currencies won’t be authorised – NDIC warns

CBN - Digital currencies won't be authorised – NDIC warns
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BBy Adeola Tukuru



The Nigeria Deposit Insurance Cooperation (NDIC) yesterday announced that digital currencies will not be authorised by the Central Bank of Nigeria (CBN) and won’t be insured by the NDIC, saying that any person or groups who invest or trade in them do so at their own risk .
The Managing Director / Chief Executive NDIC, Alhaji Umaru Ibrahim, gave this warning at the NDIC special day, 12th Abuja International Trade Fair , adding that the NDIC in collaboration with the CBN are closely monitoring the developments in the digital and virtual currencies operations.
The MD, who was represented by the Director Procurement Management and Services Department, Sani Magaji, explained that there are safety concerns associated with digital currencies, which are mainly the basic reasons why regulatory / supervisory authorities in many countries are seriously concerned about.
He however noted that the NDIC and CBN are also studying their implications for financial system from any negative effects associated with such inventions.
The MD facilitated with the President and the Council members of the Abuja Chamber of Commerce, Industry, Mines and Agriculture (ABUCCIMA) for their commitment towards sustaining the Trade fair as an annual event and for making this year’s fair a huge success.
“This year’s fair : Returning Nigeria to the path of sufficiency through non -oil exports, is a unique one as it aligns with the commitment and determination by government at all levels to put Nigeria back on the path of sustainable growth and development through diversification of economy, ” he said.
Earlier, the Second Deputy President ABUCCIMA, Abubakar Muktar, also explained that the underlying philosophy behind “self- sufficiency “is entrenched in the fact that for an economy to be productive and develop, it must first produce the goods and services consumed locally, adding that growth must be inclusive and productive sectors diversified.
He also charged the NDIC to complement other financial regulators/ agencies like CBN to foster monetary stability, promote an effective and efficient payment system.
“Also they should promote competition and innovation in the banking and even the entire financial sector,” he said.
Muktar, also commended the NDIC for raising the bar of professionalism and service delivery, adding that the cooperation should deepen awareness about the deposit insurance cover available to depositors and related procedural,legal requirements especially to the unbanked

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