No insurance for cryptocurrencies, NDIC warns

The Nigeria Deposit Insurance Corporation (NDIC) has again warned Nigerians to avoid trading in bitcoins and crypto-currencies, saying that there is 100 percent risk involved, as they are neither issued by the Central Bank of Nigeria (CBN) nor insured by NDIC.

The Managing Director/Chief Executive of NDIC, Umaru Ibrahim, who disclosed during NDIC Special Day at the ongoing 39th Kaduna International Trade Fair said that, transacting in digital currencies or ponzi schemes put people at risk which cannot be mitigated or covered by the Corporation, thus it is better to steer clear of such businesses to avoid losing one’s investments completely.

The MD, who was represented by the Director Insurance and Surveillance Department, Mohammed Umar, said that unlike other currencies issued by CBN, there is no digital currency guaranteed by the apex bank since it is not a legal tender, adding that there are over 1,000 types of bitcoin globally.

“Digital currencies do not belong to the category of currency or coins issues by CBN or a Central Bank of any country, digital currencies are not backed by any physical commodity such as gold.

Digital currencies are not deposits or instruments authorised by the CBN, therefore they are not insured by NDIC,” the MD said
The NDIC boss said all depositors with commercial banks are insured up to N500,000, while those who have money with microfinance banks and primary mortgage banks have been insured to the tune of N100,000 and N500,000 respectively per depositor. ( Daily Trust)



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