Central Bank Digital Currency (CBDC) Features

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What is a key benefit of utilizing blockchain or similar technologies in CBDC transactions?

Decreased transparency

Decreased security

Increased risk of counterfeiting

Reduced risk of counterfeiting (correct)

How might some CBDC designs influence spending behaviors?

By eliminating interest rates

By introducing interest rates (correct)

By ignoring inflation control

By decreasing security measures

What is a major privacy concern when implementing CBDC systems?

Increasing anonymity

Balancing privacy and regulatory needs (correct)

Ignoring know-your-customer regulations

Avoiding anti-money laundering regulations

How could CBDCs potentially impact unbanked populations?

Offering greater access to financial services Signup and view all the answers

What challenge needs to be addressed in transitioning from physical to digital currency?

Scalability Signup and view all the answers

What potential risk is associated with the implementation of CBDCs?

Increased cybersecurity threats Signup and view all the answers

What might be a concern regarding privacy and government surveillance in relation to a Digital Rupee?

Handling and protection of user information Signup and view all the answers

How might the economic impact of a Digital Rupee be perceived by the public?

Positive impact on economic growth and stability Signup and view all the answers

What factor could contribute to the wide acceptance of the Digital Rupee, particularly in rural areas?

Financial access to remote regions Signup and view all the answers

Why is ensuring equitable access to technology crucial in shaping public perception of the Digital Rupee?

To address concerns about exacerbating the digital divide Signup and view all the answers

How can the Government's communication strategy impact public perception of the Digital Rupee?

By providing transparent security measures and guidelines Signup and view all the answers

Why might businesses be interested in adopting the Digital Rupee?

For potential to simplify transactions and reduce costs Signup and view all the answers

What is a key advantage that many Indians might perceive in a Digital Rupee?

Streamlining payments for quicker transactions Signup and view all the answers

Why could there be enthusiasm about a Digital Rupee regarding financial inclusion?

It could provide access to banking services for the unbanked or underbanked Signup and view all the answers

What factor might influence public perception of a Digital Rupee related to government trust?

Trust in the government's ability to manage and secure the Digital Rupee Signup and view all the answers

Which aspect might raise apprehension in some sections of society regarding a Digital Rupee?

Potential cybersecurity risks associated with digital transactions Signup and view all the answers

How might a Digital Rupee contribute to boosting confidence in digital financial systems if implemented securely?

By bolstering confidence in digital financial systems Signup and view all the answers

Why could some individuals be concerned about potential glitches or system failures with a Digital Rupee?

For apprehension about technological aspects such as system failures Signup and view all the answers

What is a major weakness of the current financial system according to the text?

Reliance on a trust-based model Signup and view all the answers

Why does the text mention that the new cryptocurrency bitcoin claims to overrule the need for intermediaries?

To explain its decentralized nature Signup and view all the answers

What is the purpose of Finance Minister Nirmala Sitharaman announcing a digital currency in the annual budget?

To support the digital economy's development Signup and view all the answers

Why did India implement regulations and restrictions on digital rupee?

To address concerns about economic stability and fraud Signup and view all the answers

What is the goal of introducing a 'Central Bank Digital Currency' (CBDC) according to the text?

To develop the digital economy and offer an alternative to virtual money Signup and view all the answers

What is the significance of the chosen 6 cryptocurrencies in the context of the text?

They are commonly used and well-known. Signup and view all the answers

Why might the respondents who choose to participate in a survey affect the validity of the results?

They may provide socially desirable answers instead of their true opinions. Signup and view all the answers

What is a potential issue related to the narrow range of questions or perspectives addressed in a survey?

It may not fully capture the complexity of the topic being studied. Signup and view all the answers

When did other economic organizations start paying attention to the idea of central-bank issued digital currency?

2015 Signup and view all the answers

Who was mentioned as the original Bitcoin founder in the text?

Satoshi Nakamoto Signup and view all the answers

What defines a Central Bank Digital Currency (CBDC) according to (Arme lies, Claussen, & Hendry, 2020)?

It is regulated directly by the central bank and supported by government power. Signup and view all the answers

How might media coverage during a study period influence participant responses?

It may influence participants to provide answers that align with the media coverage. Signup and view all the answers