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 condition programmed into it such as a time- frame for spending it. Which of the statements given above is/are correct? |ForumIAS

Q. 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 condition programmed into it such as a time- frame 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

Answer: C

Notes:

Exp) Option c is the correct answer.

Statement 1 is correct. It is possible to make payments in digital currencies without using US dollar or SWIFT system.

Statement 2 is correct. The digital yuan is programmable to the extent that the currency can be designed to expire, forcing users to spend it all by a specific date. It means that the digital currencies can be programmed to be spent within a predetermined time range.

Source:

https://bfsi.economictimes.indiatimes.com/news/policy/digital-currency-yuan-comes-with-an-expiry-date-spend-or-it-will-vanish/82059471#:~:text=The%20digital%20yuan%20is%20programmable,up%20by%20a%20certain%20date.

https://blogs.worldbank.org/allaboutfinance/expiring-money-part-i

Subject) Economy

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