GK Question

technology hard mcq

Which CBDC feature enables automatic tax withholding on transactions?

  1. Smart Contracts
  2. Programmable Money
  3. Both A and B
  4. Neither

Answer: Both A and B

Programmable CBDC with smart contracts can automate tax collection at point of transaction, reducing compliance burden and evasion. Requires careful design to balance efficiency with privacy and user control.

Topic CBDC
Exam Relevance Banking, UPSC, SSC