CBN Warns Nigerians Against Virtual Currencies

CBN Warns Nigerians Against Virtual Currencies

As Nigerians continue to seek ways of making more money, the Central Bank of Nigeria (CBN) has cautioned against investments in crypto currency, maintaining that virtual currencies were not legal tender in the country.

It identified such crypto currencies as Bit Coin, Ripples, Monero, Litecoin, Doge Coin, One Coin and exchanges such as NairaEx.

The CBN gave the caution in statement by Mr Isaac Okorafor, Acting Director of Corporate Communications Department posted on its website.

According to Okorafor, dealers and investors in any kind of crypto currency in Nigeria are not protected by law.

Okoroafor said that virtual currencies were traded in exchange platforms that were unregulated all over the world.

He also said that customers might therefore, lose money without legal redress in the event that exchanges collapse or close business.

Crypto currency is a digital asset designed to work as a medium of exchange that uses cryptography.

Cryptography is the art of writing and solving codes to secure its transactions, control the creation of additional units, and to verify the transfer of assets.

The CBN had in January 2017, issued a circular to banks and other financial institutions on virtual currency operations in the country.

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