GK Question

technology medium mcq

Which CBDC design enables transactions without revealing user identity to merchants?

  1. Account-based
  2. Token-based with Privacy
  3. Hybrid
  4. All of these

Answer: Token-based with Privacy

Token-based CBDC with privacy features (blind signatures, ZK-proofs) enables pseudonymous transactions while maintaining central bank oversight. Balances privacy with AML/CFT compliance requirements.

Topic Digital Currencies
Exam Relevance Banking, UPSC, SSC