Bitcoins not licensed by CBN, says NDIC

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THE Nigeria Deposit Insurance Corporation, NDIC, has warned against patronising dubious fund managers, saying that Bitcoins and wonder banks were not licensed by the Central Bank of Nigeria, CBN, and therefore not insured by NDIC.

Disclosing this at the NDIC Special Day at the Lagos International Trade Fair, the Managing Director/Chief Executive, NDIC, Alhaji Umaru Ibrahim said the protection of the depositor remains their top priority, that is why they stress the need for depositors to patronise only 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.

“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, the digital currencies are not licensed by the CBN and therefore not insured by the NDIC” he said.

Ibrahim who was represented by the Director/Claims Resolution Department, NDIC, Lagos, Mr. Asumo Bello, said knowledge they say is power and they believe that depositors who are enlightened about the benefits and limitations of deposit insurance are empowered to make informed financial decisions that would contribute to their quality of life.

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