Q. With reference to the recent announcement of digital rupee, which of the following benefit/s will occur by launching digital rupee?
a.Prevent counterfeiting of currency
b.Lower the cost for financial transactions
c.Recognize the right to privacy
Select the correct answer from the code given below.
Statement 1 is correct: The Digital rupee will prevent counterfeiting of currency and a boost to the war on black money and corruption.
Statement 2 is correct: The Digital Rupee will accelerate financial inclusion, lower costs for financial transactions, especially in the case of cross-border transactions.
Statement 3 is incorrect: The digital currency must collect certain basic information of an individual so that the person can prove that he’s the holder of that digital currency. This basic information can be sensitive to issues such as the person’s identity, fingerprints etc. Hence the digital currency might violate right to privacy.
Further, CBDCs will leave a digital trail even with the phone turned off. For instance, trails such as paying for food, fare and lodging.
Source: https://bit.ly/3grGIRK
