Nigerian Regulator Cautions Against Crypto Transactions

Nigerians have been cautioned by the Nigeria Deposit Insurance Corporation (NDIC) against the utilization of cryptocurrencies on the grounds that the Central Bank of Nigeria (CBN) does not remember them as real money, local news outlet Business Post Nigeria detailed yesterday, March 23.

Business Post Nigeria takes note of this isn’t the first warning cautioning against cryptocurrencies, as different government organizations in Nigeria have forewarned residents on the new type of currency.

Adikwu Igoche, an official at the Research Department at the NDIC, said that digital currencies as were not approved by the CBN and were in this manner not safeguarded by the NDIC. The Nigeria Deposit Insurance Corporation ( NDIC ) says transactions in digital currencies are not authorized by the Central Bank of Nigeria ( CBN ), cautioning Nigerians against transacting business in bitcoin and other cryptocurrencies. The Manager, Research Department, NDIC, Mr. Adikwu Igoche, gave the warning in an interview with the reporter on Friday at the ongoing 29th Enugu International Trade Fair. Bitcoin and other cryptocurrencies are forms of digital currencies which only exist in some websites and not backed by the country’s law.

During a meeting with the News Agency of Nigeria (NAN) at the 29th Enugu International Trade Fair on Friday, March 23, Igoche said that since digital currencies are not supported by any physical commodity, for example, gold or valuable stone, they don’t have a place in the classification of monetary forms or coins issued by the CNB or the national bank of some other nation.

Igoche noticed that Nigerian subjects should just utilize monetary organizations that are guaranteed by NDIC, signified by a sticker in their physical areas. Igoche included that the NDIC had remained at the reason for helping Nigerians with what to do if their bank has been shut.

Nations everywhere throughout the world have been issuing notices to customers about putting resources into digital currencies and Initial Coin Offerings (ICO), from the European Union to the United Arab Emirates.

In October of a year ago, Cointelegraph detailed that the Nigerian government was currently associating with a few Blockchain associations and new companies to build up the innovation in the nation.