By Emma Ujah

Those investing in virtual currency or bit coins  are gamblers, the Deputy Director of Research, Policy and International Relations (RPIR) of the Nigeria Deposit Insurance Corporation (NDIC), Dr. Sabo Katata, has said.

He spoke at the NDIC workshop for Business Editors and Finance Correspondents, in Kano, yesterday.

His words, “Digital currency is for gamblers.  If you want to invest in bit coins you can go ahead, for that is what you are.

“If you want to buy bit coins you can, but your are doing so at your own risk. The regulators will not come and protect you.”

Dr. Katata presented a paper: Financial Disruption of Digital Currency and it’s Consequences on the Banking System and Deposit Insurance System”.

He noted that even the Bank of England has identified about 70 risks associated with digital currency and warned the Nigerian public against unmitigated risks.

In his remarks, the Director of RPIR, Alh. Mohammed Umar Yayangida, stressed that the Monetary regulators in Nigeria, namely the NDIC and the.Central Bank of Nigeria don’t  have any control over digital currencies .

He added that those who venture into such highly risky investments must note the risks therein.

He revealed that an inter-agency committee has been raised to work on the development in order to respond appropriately to it.

The committee consists of officials from NDIC, CBN, Department  of State Services (DSS), Police, Securities and Exchange Commission (SEC).

At the opening, the Managing Director  (MD), Alh. Must Ibrahim, urged closer stakeholder collaboration.

source:vanguard

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