The Nigeria Deposit Insurance Corporation (NDIC), a federal insurance supervisor and safety net provider, has issued a public warning regarding looking forward to cryptocurrency transactions in a very press release on July 25.

According to the press release, managing director and chief executive officer of NDIC Umaru Ibrahim said that counting on cryptocurrencies is extremely risky, as they're unregulated and unbacked by central banks in most monetary jurisdictions.

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

House speaker notes would like for crypto regulation

Ibrahim initially voiced his concerns throughout a courtesy decision with the NDIC board and also the Speaker of the House of Representatives, per a report by the news outlet Ripple Nigeria on July 25.

Speaker Femi Gbajabiamila, voiced an avidity to manage cryptocurrencies and partake within the emerging international crypto market, saying:

“The NDIC and other safety-net participants within the country should not be left behind in the adoption of appropriate regulative framework to deal with the prevalence of cryptocurrencies in the world monetary space.”

As antecedently reported by Top MarketGroup, Gbajabiamila additionally mentioned the distinction between the NDIC and also the central bank of Nigeria. The speaker said that the House of Representatives would assist NDIC in growing its statutory functions, while not infringing upon the central bank’s domain of responsibilities.

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