Nigeria warns citizens about the insecurity of crypto-currency transactions

The Nigerian Deposit Insurance Corporation (NDIC) warns residents of the danger of using crypto currency. The Central Bank of Nigeria (CBN) does not recognize digital currencies as legitimate means of payment. Business Post Post Nigeria reports that this is not the first warning against the crypto currency, because "various government agencies in the country warn citizens against a new form of payment."

Adikwu Igoche, executive director of the Research Department at NDIC, said that CBN did not authorize the use of digital currencies and thus they were not "insured by NDIC".

Nigeria does not consider digital assets a "sound investment"

During an interview with the Information Agency of Nigeria (NAN) at the 29 International Trade Fair Enugu, Igoche said that since digital currencies "Are not backed by any physical commodity, such as gold or precious stones, they do not fall into the category of currencies or assets issued by the CNB or the central bank of any other country."

He also noted that Nigerian citizens should use only financial institutions that are "insured by NDIC". Igoci added that NDIC has a booth at the fair to assist the Nigerians if their bank was closed.

Countries around the world issue warnings to consumers about investing in crypto-currency assets and ICO, from the European Union to the United Arab Emirates.

In October last year, it was reported that the Government of Nigeria had actively interacted with several Blockchain organizations and start-ups to develop technology in the country.

Author: Olga Novikova, Analyst Freedman Club Crypto News
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