Q72 · UPSC Prelims 2023 · Set A · Current Affairs and GK

← Q71 Q73 →

With reference to 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 a time-fame for spending it.Which of the statements given above is/are correct?

A 1 Only
B 2 Only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (c) Both 1 and 2

Explanation

  1. A

    1 Only

    1 only. Programmable expiry is also a CBDC design option.

  2. B

    2 Only

    2 only. Cross-border CBDC can bypass dollar/SWIFT rails.

  3. C

    Both 1 and 2

    Both. Payments without USD/SWIFT, and programmable conditions such as a spending window.

  4. D

    Neither 1 nor 2

    Neither. Both are standard CBDC talking points.

Summary. Official key is (c) both. A central-bank digital currency can settle without using the US dollar or SWIFT. It can also carry programmed conditions (a time window, a merchant category). Both statements hold.

PYQ trend

When UPSC asked this

Related PYQs from other years, newest first. Open a question to read it.

  1. 2018 · Q28 · General Studies · 2 marks

    With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct?

    View answer →

  2. 2016 · Q84 · General Studies · 2 marks

    Regarding 'DigiLocker', sometimes seen in the news, which of the following statements is/are correct? 1. It is a digital locker system offered by the Government under Digital India Programme. 2. It allows you to access your e-documents irrespective of your physical location. Select the correct answer using the code given below

    View answer →