NIGERIA: BITCOIN IS NOT A LEGAL TENDER IN NIGERIA - CALIPHATE MEDIA

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Tuesday, 14 November 2017

NIGERIA: BITCOIN IS NOT A LEGAL TENDER IN NIGERIA




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     The Managing Director/Chief Executive Officer of Nigeria Deposit Insurance Corporation (NDIC) Alhaji Umaru Ibrahim has warned members of the banking public on the danger of carrying financial transaction using digital currencies like Bitcoins, saying they are not legal tenders in Nigeria and are not acceptable. Alhaji Umaru Ibrahim handed down the warning at the just concluded Lagos International Trade Fair, represented at the event by the Director/Claims Resolution Department, NDIC, Mr. Asumo Bello; Ibrahim said “the protection of the depositor remains the top priority, of the Corporation.”  
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 He went further tosay that depositors should only patronize financial institutions that are licensed by the CBN and which display the NDIC sticker with the words, “Insured by NDIC”, in their banking hall or entrances.

He stated: “It is for this reason that I must sound a word of warning against patronizing dubious fund managers, otherwise known as “Wonder Bank”. They persuade their unsuspecting victims to part with their hard earned money with promises of interest rates that are unrealistically high as the returns of their investments” “The result is the loss of vital savings and sometimes disastrous consequences to the lives of the victims. Also the emerging trend of investing in digital currencies popularly known as Bitcoin is equally dangerous because just like wonder bank as they are not legal tenders and is not recognize and acceptable or licensed by CBN and therefore not insured by the NDIC” Mr. Asumo Bello said.

The NDIC is a parastatal under the Federal Ministry of Finance. The corporation is charged with protecting the banking system from instability occasioned by runs and loss of depositors' confidence. It operates under the Nigeria Deposit Insurance Corporation Act (1990). The NDIC is a member of the Financial Reporting Council of Nigeria. The NDIC complements the regulatory and supervisory role of the Central Bank of Nigeria (CBN), although it reports to the Federal Ministry of Finance. The NDIC advises the CBN in the liquidation of distressed banks and manages distressed banks' assets until they are fully liquidated.
The NDIC has a supervisory role over insured banks.
 
The Nigeria Deposit Insurance Corporation (NDIC) was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria. Governor Ola Vincent. The NDIC provides a safety net for depositors in the newly liberalized banking sector.

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