Q.1 Discuss the various implications of using digital currencies on Indian society. (10 Marks)

Mentor’s Comments-

  • Start by explaining the emerging concept of central bank digital currency (CBDC).
  • In the body, first, in brief, write about the technology behind CBDC digital instruments – Blockchain giving rise to secure digital instruments. Next, write about potential benefits that society can accrue from CBDC- financial inclusion, the cashless society, decrease the cost of printing, expanding the digital economy and empowering citizens etc. Next, write about potential challenges with regard to CBDC. User adoption, security, complexity, domination by Chinese and opportunity cost due to RBI’s reluctance etc.
  • Conclude with a way forward as to how India should step up to CBDC.

 

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2 years ago

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2 years ago

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2 years ago

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2 years ago

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2 years ago

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