Q72. With reference to Central Bank digital currencies, consider the following statements:
- It is possible to make payments in a digital currency without using the US dollar or the SWIFT system.
- A digital currency can be distributed with a condition programmed into it such as a time frame for spending it.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Correct Answer: Option (c)
- Central Bank Digital Currency (CBDC) is a digital form of currency notes issued by a central bank. Here payments in a digital currency are without using the US dollar or SWIFT system. Hence, statement 1 is correct.
- A CBDC is programmable to the point that the currency can be made to expire, thus forcing consumers to use it upto a certain date. Hence, statement 2 is correct.
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