With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to…
With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using the US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a timeframe for spending it. Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
Solution
Per the official UPSC key, the answer is B. Both statements are correct features of CBDCs — most coaching keys marked C. UPSC officially marked B.