The RBI once again highlights the risks that arise from virtual currencies.
Mumbai:
India’s macroeconomic fundamentals remain solid but ongoing global developments present downside risks in terms of spillovers, the Reserve Bank of India said in its monthly newsletter on Thursday.
The ongoing geopolitical crisis has increased the uncertainty surrounding the global macroeconomic and financial landscape even as the world economy struggles to recover from the pandemic, the RBI wrote. epidemic,” the RBI wrote, adding that the uncertain economic outlook has increased risks for emerging economies.
It is observed that although India is making steady progress on the domestic front, the spiraling rise in oil and gas prices and volatile financial market conditions are also creating new winds for growth. The global recovery is not yet complete.
The RBI also said that a rapid and large withdrawal of fiscal support risks pushing the economy into a sharp recession.
The RBI adds: “Escape policymakers face a razor-edge trade-off between cliffs and ramps.
It continued with an accommodative stance even as inflation inched up and left the key lending rate unchanged, holding at record lows during the central bank’s last policy announcement held on Feb. February.
The RBI once again highlighted the risks that arise from virtual currencies, noting that cryptocurrency technology is underpinned by a philosophy that aims to evade government control and threaten a country’s financial sovereignty. and makes it vulnerable to strategic manipulation.
They can (and if are allowed to) damage the monetary system, monetary authorities, banking system, and generally the government’s ability to control the economy, the RBI writes.
Last month, the central bank issued a stark warning against investing in cryptocurrencies and compared it to Ponzi schemes, adding that they should be banned.
