Private Cryptocurrencies Pose Risk, Prone to Frauds, Illegal Acts: RBI Report
IANS 30 December 2021
The Reserve Bank of India (RBI) on Wednesday said the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated risks.
 
According to the report,  cryptocurrencies pose immediate risks of frauds, to anti-money-laundering efforts, and fight aginst terror financing.
 
Besides, these assets are prone to extreme price volatility, given their highly speculative nature,  RBI said in its latest Financial Stability Report.
 
"Longer term concerns relate to capital flow management, financial and macro-economic stability, monetary policy transmission and currency substitution," the report said.
 
Furthermore, on the non-performing assets (NPAs) of the scheduled commercial banks, the RBI expects gross non-performing assets to jump from 6.9% in September 2021 to 8.1% by September 2022 under the baseline scenario and to 9.5% under a severe stress scenario.
 
Besides, the report said inflationary pressures in food and energy increased significantly in the recent months, with food prices remaining far above their long-term growth rates.
 
"The outlook appears uncertain as supply bottlenecks gradually ease, global liquidity and monetary policy regimes begin recalibration to normalise and demand gathers steam," the report added.
 
"The demand for industrial and base metals is, however, likely to be robust on the back of global investment in decarbonisation. Inflationary pressures are reinforced by the fall in production of food items, supply side disruptions and rising input costs."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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