Q92.
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?
Answer
C
Explanation
to SWIFT and the U.S. dollar are coming two directions: cryptocurrencies and central bank currencies. Countries will be able to directly digital currencies in a bilateral way and going through SWIFT or similar settlement When the technology allows seamless and convertibility from one sovereign into another, it changes the practical need for dominant global reserve currency. could be employed for fiscal transfers to or firms, such as relief or stimulus Such helicopter drops or subsidies would become easier when there is widespread of CBDC accounts. The transfer payments also be “programmable”, with conditions such as upon a certain date or a requirement to the funds at certain vendors.