UPSC Prelims 2023 · GS Paper 1 · Q22

Economy

Medium · Central Bank Digital Currency (CBDC)

Consider the following statements:

1. Digital currency-based payment systems can potentially allow cross-border transactions to bypass the US dollar-dominated SWIFT payment system.

2. A Central Bank Digital Currency (CBDC) can be programmed to restrict its use to specific purposes or to carry an expiry date.

Which of the statements given above is/are correct?