With reference to the Central Bank digital currencies, consider the following statements:
1. It is possible to make payments in a digital currency without using US dollar or SWIFT system.
2. A digital currency can be distributed with a condition programmed into it such as time-frame for spending it.
Which of the statements given above is/are correct?
Answer:
(c)
CA
The correct answer is (c) Both 1 and 2. st1 is right. Central bank digital currencies (CBDCs) are digital versions of fiat currencies that are issued and regulated by central banks. They are designed to be a more efficient and secure way of making payments, and they can be used to make payments without using the US dollar or the SWIFT system. st2 is right. CBDCs can also be distributed with a condition programmed into them, such as a time-frame for spending them. This could be used to encourage people to spend the money quickly, which could help to stimulate the economy.