With reference to Project Mariana, consider the following statements:1.It is a joint initiative of the Bank for International Settlements (BIS) Innovation Hub and central banks of France, Singapore, and Switzerland to explore the potential of using central bank digital currencies (CBDCs) for cross-border payments.2.Project Mariana will use a single CBDC for all cross-border payments.Select the correct answer from the codes given below:

Q. With reference to Project Mariana, consider the following statements:
1.It is a joint initiative of the Bank for International Settlements (BIS) Innovation Hub and central banks of France, Singapore, and Switzerland to explore the potential of using central bank digital currencies (CBDCs) for cross-border payments.
2.Project Mariana will use a single CBDC for all cross-border payments.
Select the correct answer from the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation –

Statement 1 is correct. Project Mariana is a joint initiative of the Bank for International Settlements (BIS) Innovation Hub and central banks of France, Singapore, and Switzerland to explore the potential of using central bank digital currencies (CBDCs) for cross-border payments.

Statement 2 is incorrect. Project Mariana will not use a single CBDC for all cross-border payments. Instead, it will allow for the use of multiple CBDCs, which will be exchanged for each other using automated market makers (AMMs).

Source: ForumIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS