Consider the following statements regarding CBDC: 1. It is a digital form of legal tender issued and regulated by the Reserve Bank of India. 2. CBDC is a type of cryptocurrency where the market determines its value through supply and demand. Which of the statements given above is/are correct? |ForumIAS

Q. Consider the following statements regarding CBDC:
1.It is a digital form of legal tender issued and regulated by the Reserve Bank of India.
2.CBDC is a type of cryptocurrency where the market determines its value through supply and demand.
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: A

Notes:

Explanation:

Statement 1 is correct: It is a digital version of the sovereign currency (e-Rupee).
Statement 2 is incorrect: CBDC is not a cryptocurrency. Its value is fixed by the central bank and is identical to physical cash, unlike cryptocurrencies which are volatile private assets.