Nigeria insurance overseer urges caution on adoption of cryptos

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The Nigeria Deposit Insurance Corporation has urged caution on the adoption of cryptocurrencies in the country. NDIC’s chief executive officer, Umaru Ibrahim, reminded Nigerians of the risks associated with cryptos, as residents in the country are considered to be among the fastest adopters of cryptos globally and a leading force in Africa.

Ibrahim was speaking after holding a meeting with the Speaker of the Federal House of Representatives Femi Gbajabiamila in his office in Abuja. He recognized that cryptos have their advantages and can make a huge impact on the Nigerian financial sector. However, they also pose risks to the financial industry and also to the investors, whom he urged to be cautious when investing their money.

One of the biggest risks emanates from the fact that cryptos aren’t regulated, Ibrahim stated. This makes them prone to manipulation which can result in financial losses. They are also not backed by any central bank, which according to him, poses a big risk for investors.

While Ibrahim urged caution in regards to cryptos, his counterpart and the chairman of the board of NDIC Ronke Sokefun called on better regulations for the industry. Sokefun pointed out that the entire world is seeking ways to integrate cryptos into their financial systems. Thus, the NDIC and all the other financial industry regulators must also strive to take similar steps and regulate the industry or risk lagging behind in the new financial era.

As reported by CoinGeek, the Speaker of the House of Representatives in the West African country, Femi Gbajabiamila, is pro-crypto and believes that Nigeria could set itself up to become a regional crypto hub. In his remarks, Gbajabiamila referred to a recent meeting in Osaka, Japan, where world leaders congregated to deliberate on cryptos. This and several other global developments are proof that leading economic powerhouses intend to include crypto in their financial systems. He also promised that the House of Representatives will work with all the other associated government departments to regulate the crypto industry in Nigeria.

Nigeria, which is Africa’s largest economy, has been open-minded when it comes to cryptos. While some African countries such as Morocco have banned crypto use altogether, and some like Zambia have restricted its use, Nigeria has allowed its people to engage in crypto trading.