Cryptocurrency and CBDC — Prelims Questions

Which of the following statements correctly differentiates between Central Bank Digital Currency (CBDC) and private Cryptocurrencies?

Consider the following statements regarding the Reserve Bank of India's (RBI) Digital Rupee (e₹) pilot projects: 1. The wholesale CBDC (e₹-W) pilot is primarily focused on interbank settlements and government securities transactions. 2. The retail CBDC (e₹-R) pilot is designed for a closed user group of customers and merchants, facilitated through commercial banks. 3. Both e₹-W and e₹-R are intended to completely replace the existing UPI payment system in India. Which of the statements given above is/are correct?

With reference to 'blockchain technology', which of the following statements is/are correct? 1. It is a distributed ledger where all transactions are recorded chronologically and immutably. 2. It inherently requires a central authority to validate transactions and maintain the ledger. 3. Cryptocurrencies like Bitcoin and Ethereum are built upon blockchain technology. Select the correct answer using the code given below:

Which of the following is NOT a stated potential advantage of Central Bank Digital Currency (CBDC) for India?

In the context of India's regulatory approach to cryptocurrencies, the Supreme Court's 2020 judgment in 'Internet and Mobile Association of India (IAMAI) vs. RBI' primarily: