NDIC to monitor cryptocurrency risks

As Nigerians continue to embrace the use of cryptocurrencies for financial transactions, the Nigeria Deposit Insurance Corporation (NDIC) has promised to monitor financial risks.

Kabir Katata, Deputy Director of the Research Department, NDIC, says while cryptocurrencies do not pose financial stability risks, they still raise notable concerns such as consumer and investor protection, market integrity and money laundering/terrorist financing.

He observed that associated risks have extensive implications for deposit insurance, banking, and legal practice said the Deputy Director.

“Banks and government agencies are already exploring how blockchain might transform their approaches to operations,” he noted.

“We should continue to monitor developments in digital currency so as to resolve any concern on legal, financial and consumer protection.”

Katata also agreed that blockchain, the technology that powers digital currencies, has economic, political, humanitarian, and legal system benefits and could have the capacity for reconfiguring all aspects of the society and its operations.