{"id":92107,"date":"2025-06-01T11:14:03","date_gmt":"2025-06-01T11:14:03","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92107"},"modified":"2025-06-01T11:14:03","modified_gmt":"2025-06-01T11:14:03","slug":"with-reference-to-central-bank-digital-currencies-consider-the-follow","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/","title":{"rendered":"With reference to Central Bank digital currencies, consider the follow"},"content":{"rendered":"<p>With reference to Central Bank digital currencies, consider the following statements :<\/p>\n<ul>\n<li>1. It is possible to make payments in a digital currency without using US dollar or SWIFT system.<\/li>\n<li>2. A digital currency can be distributed with condition programmed into it such as a time-frame for spending it.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2023<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2023.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2023\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nBoth statements are correct. Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing.<br \/>\n&#8211; CBDCs can be designed with built-in rules or conditions, making them &#8216;programmable&#8217;. This could include setting time limits for spending (expiry dates), restricting usage to specific goods or services, or triggering payments upon fulfillment of certain conditions.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nCBDCs are digital forms of a country&#8217;s fiat currency issued by the central bank. They are distinct from cryptocurrencies like Bitcoin (which are decentralized) and stablecoins (which are typically issued by private entities and pegged to an asset). Many central banks globally are researching and piloting CBDCs for various potential benefits, including payment system efficiency, financial inclusion, and monetary policy implementation.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to Central Bank digital currencies, consider the follow\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/#more-92107\">Detailed Solution<span class=\"screen-reader-text\">With reference to Central Bank digital currencies, consider the follow<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1105,1120,1190],"class_list":["post-92107","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1105","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to Central Bank digital currencies, consider the follow<\/title>\n<meta name=\"description\" content=\"Both statements are correct. Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability. - CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing. - CBDCs can be designed with built-in rules or conditions, making them &#039;programmable&#039;. This could include setting time limits for spending (expiry dates), restricting usage to specific goods or services, or triggering payments upon fulfillment of certain conditions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Central Bank digital currencies, consider the follow\" \/>\n<meta property=\"og:description\" content=\"Both statements are correct. Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability. - CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing. - CBDCs can be designed with built-in rules or conditions, making them &#039;programmable&#039;. 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Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability. - CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing. - CBDCs can be designed with built-in rules or conditions, making them 'programmable'. This could include setting time limits for spending (expiry dates), restricting usage to specific goods or services, or triggering payments upon fulfillment of certain conditions.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Central Bank digital currencies, consider the follow","og_description":"Both statements are correct. Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability. - CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing. - CBDCs can be designed with built-in rules or conditions, making them 'programmable'. This could include setting time limits for spending (expiry dates), restricting usage to specific goods or services, or triggering payments upon fulfillment of certain conditions.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:14:03+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/","name":"With reference to Central Bank digital currencies, consider the follow","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:14:03+00:00","dateModified":"2025-06-01T11:14:03+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Both statements are correct. Central Bank Digital Currencies (CBDCs) offer capabilities that can bypass traditional international payment systems like SWIFT and can potentially incorporate features like programmability. - CBDCs allow for direct digital payment rails that do not necessarily rely on intermediary banks or existing international systems like SWIFT. This can facilitate faster and potentially cheaper cross-border transactions without requiring conversion to a specific reserve currency like the US dollar for routing. - CBDCs can be designed with built-in rules or conditions, making them 'programmable'. This could include setting time limits for spending (expiry dates), restricting usage to specific goods or services, or triggering payments upon fulfillment of certain conditions.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-central-bank-digital-currencies-consider-the-follow\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to Central Bank digital currencies, consider the follow"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=92107"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92107\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=92107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=92107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=92107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}