GK Question

technology medium mcq

Which CBDC design choice impacts user privacy versus regulatory compliance?

  1. Token vs Account-based
  2. Centralized vs Distributed Ledger
  3. Online vs Offline Capability
  4. All of these

Answer: All of these

CBDC architecture involves trade-offs: token-based offers more privacy but harder AML; distributed ledgers enhance resilience but complex governance; offline mode improves inclusion but security challenges.

Topic Digital Currencies
Exam Relevance Banking, UPSC, SSC