The NDIC, Nigeria Deposit Insurance corporation, has announced to civilians its stance on cryptocoin transactions. While the corporation provides the bulk of insurance services for fiat banking institutions, cryptocoin transactions will not be covered as the company warned users all risk will fall on the parties involved. The announcement was made at the 12th Abuja International Trade Fair as a warning to companies and individuals alike.
The managing director of the firm further emphasized that both institutions hadn’t recognized the digital currency therefore exempting it from protection. While the current stance is set firmly against cryptocoins, the firm is researching the technology to fully understand it as the nature of the blockchain and irreversible transactions, mean serving a insurance policy may not only be extremely expensive but unfeasible in some applications.
“In view of the growing popularity which the phenomenon is gaining in Nigeria, it has become important to state that digital currencies are not authorized by the Central Bank of Nigeria and they are not insured by NDIC,” he warned.
To conclude, the Nigerian Deposit insurance corporation has announced that it wont be covering deposits made in cryptocurrency as part of their financial protection services. Whilst the NDIC and the central bank of Nigeria are in a close business partnership, as we reported previously the CBN has authorized a handful of banks in Nigeria to accept the cryptocoin technology as a form of payment. However many users have noted that when dealing with cryptocoins, using verified and legitimate businesses such as NairaEx to make bitcoin purchases considerably safe.
For peer to peer trading, many traders have found a workaround as using ESCROW has become the norm. Using a trusted third party independent of the client or company, each party has a failsafe to recover assets