As per the Nigerian news channel, The Sun, the CEO and director of Nigerian Deposit Insurance Corporation (NDIC), Ibrahim Umaru, has expressed his concerns over cryptocurrencies as well as its disintermediation.
Disintermediation is the process of direct investment by customers in the markets. The intermediaries like banks are not referred to, in this process. The NDIC safeguards the functioning of the liberalized banks. It came in power in 1988 and played the role of supervision to protect insured banks. This corporation directly reports to Nigerian Federal Ministry of Finance, in case of some imbalance.
Ibrahim Umaru expressed his doubts about disintermediation, Bitcoin and fintech, in an NDIC forum. He stated that the expansion and activities of digital currencies like Bitcoins and fintech are causing disintermediation in the banks, which is of grave concern to NDIC.
In March NDIC also cautioned Nigerian citizens about the illegality of cryptocurrencies and their use. Adikwu Igoche, an NDIC official, mentioned that the Central Bank of Nigeria does not recognize cryptocurrencies as legal entities. Therefore, they are neither insured nor authorized by the Central Bank.
However, CoinTelegraph had reported in November that the presidential candidate in Nigeria, belonging to an opposition party, had promised people to bring a positive change in the economy, by bringing back cryptocurrencies and blockchain. According to his “Get Nigeria Working Again” policy, he wants to provide the permit to Bitcoins. Besides, the local government is allying with startup companies to help the growth of blockchain in Nigeria.
Nevertheless, Chimezie Chita, the national coordinator of the first Blockchain conference in Nigeria, which was held last year, pointed out some complications in acceptance of fintech revolution. He stressed that it requires a lot of resources to change the general mindset of people, about Bitcoin and other cryptocurrencies being Ponzi schemes.