Information coming from the Deputy Director of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Kabir Katata revealed that the body is currently monitoring the risks involved with the use of digital currencies and are also trying possible best to protect the general public over worries on digital currencies.

As reported by the Punch Newspapers, Mr. Katata said “We should continue to closely watch improvements in digital currencies so as to resolve any form of worry on legal, financial and consumer protection,”

He notably mentioned that worries over digital currencies are not just in Nigeria alone but in other countries as well. He explained that financial sector regulators in Nigeria are expressing worries over the risks related with investing in digital currencies as many financial institutions in the country has gone into using it.

Mr. Kabir Katata stressed that although digital currencies increase worries for consumer and investor security, market integrity, money laundering and financial terrorism, it does not risk the global financial system in any way.

He further disclosed that presently, financial institutions and Government agencies are looking into the blockchain technology as it is able to extremely change the country’s economy. According to him, the blockchain technology is capable of reforming the various sections of the society and their individual operations.

However, it should be known that this is not the first time that the NDIC is expressing worries over digital currencies. In the early stages of 2018, it was reported that the NDIC warned that they did not insure any digital currency investment as they were issued by the apex bank.

Also, about a year ago, NDIC warned Nigerian digital currency investors and those wishing to invest that they are at self risk. Notwithstanding, that did not mean that they were planning to restrict Nigerian citizens from investing in digital currencies.

The Central Bank of Nigeria (CBN) just like the NDIC also warned Nigerians about the risk in digital currencies. The CBN Governor in January linked investments in digital currencies to gambling and that they (CBN) cannot give their full support of it.

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