Question
Consider the following statements regarding “Central
Bank Digital Currency (CBDC)”: I. Being a digital fiat currency, it cannot be transacted using wallets backed by blockchain. II. Nigeria has been the first economy to launch its nationwide CBDC. III. CBDCs are legal tenders issued and backed by a central bank. Which of the statements given above is/are correct?Solution
It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Statement I is not correct - The digital fiat currency or CBDC can be transacted using wallets backed by blockchain. Bahamas has been the first economy to launch its nationwide CBDC — Sand Dollar. Statement II is not correct - China became the world's first major economy to pilot a digital currency e-CNY in April 2020. Nigeria is another country to have rolled out eNaira in 2020. Statement III is correct - CBDCs are a digital form of a paper currency and unlike cryptocurrencies that operate in a regulatory vacuum, these are legal tenders issued and backed by a central bank.
Who is the Author of the book “ ‘The Maverick Effect’?
What is meant by "Disguised unemployment"?
Which organization played a pivotal role in designing the Project 17A warships, including India's latest warship Mahendragiri, showcasing the country's ...
What significant feature has SEBI proposed for mutual fund investments by REITs to manage cash flows more effectively?
National Statistical Office (NSO) has released the second advance estimates of national accounts. The GDP growth rate projection as per NSO for 2021-22 ...
How much cargo is currently handled by Adani Ports across its 15 domestic ports in India?
Who was appointed as the interim MD & CEO of Bandhan Bank effective from July 10?
On which date World War Orphans Day is observed annually?
What led to the permanent closure of the Afghanistan Embassy in Delhi, effective from November 23?
The Paika Rebellion is associated with which of the following States?