CBN urges Nigerians against investing in crypto currencies

CBN urges Nigerians against investing in crypto currencies

The Central Bank of Nigeria (CBN) has cautioned Nigerians against investments in cryptocurrency, noting that virtual currencies were not legal tender in the country.

The apex bank identified such cryptocurrencies as BitCoin, Ripples, Monero, Litecoin, DogeCoin, One Coin and exchanges such as NairaEx.

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

According to him, dealers and investors in any kind of cryptocurrency 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.

Cryptocurrency 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.