Nigerian Deposit Insurance Corporation Warns Against Crypto Dependency

The CEO of the Nigeria Deposit Insurance Corporation says cryptocurrencies are very risky since they are not regulated or backed by central banks.

The Nigeria Deposit Insurance Corporation (NDIC), a federal insurance overseer and safety net provider, has issued a public warning about relying on cryptocurrency transactions in a press release on July 25.

According to the press release, managing director and CEO of NDIC Umaru Ibrahim said that relying on cryptocurrencies is very risky, because they are unregulated and unbacked by central banks in most financial jurisdictions. 

Much like the United States’s Federal Deposit Insurance Corporation, the NDIC provides a safety net for depositors and aims to protect the banking system from instability caused by bank runs or loss of confidence.

House speaker notes need for crypto regulation

Ibrahim initially voiced his concerns during a courtesy call with the NDIC board and the Speaker of the House of Representatives, according to a report by the news outlet Ripple Nigeria on July 25.

Speaker Femi Gbajabiamila, voiced an eagerness to regulate cryptocurrencies and partake in the emerging global crypto market, saying:

“The NDIC and other safety-net participants in the country must not be left behind in the adoption of appropriate regulatory framework to deal with the prevalence of cryptocurrencies in the global financial space.”

As previously reported by Cointelegraph, Gbajabiamila also discussed the difference between the NDIC and the Central Bank of Nigeria. The speaker said that the House of Representatives would assist NDIC in growing its statutory functions, without infringing upon the central bank’s domain of responsibilities.


If you have other interesting news about this topic or other cryptocurrency news please let us know. Don’t forget to view our useful bitcoin videos collection to learn more about Bitcoin and Blockchain. Investing in Cryptocurrencies can be very profitable but always make sure you’re keeping your coins safe. You can use the tutorial that will teach you how to make a bitcoin paper wallet that’s the simplest way to keep your Bitcoins but the safest way is by using a hardware wallet.

You’re invited to share your opinion about this news “Nigerian Deposit Insurance Corporation Warns Against Crypto Dependency” by adding your comment bellow. Let’s keep this discussion civilized with a non-offensive language.

Tags: crypto newscryptocurrency news


Passionate about Crypto-Currencies and Bitcoin enthusiast. Oliver is an Editor on Crypto Cool News.

Add Your Comment