GK Question

technology medium mcq

Which technology enables confidential CBDC transactions while allowing regulatory audit?

  1. Zero-Knowledge Proofs
  2. Homomorphic Encryption
  3. Secure Multi-Party Computation
  4. All of these

Answer: All of these

Privacy-enhancing technologies: ZK-proofs verify without revealing data; homomorphic encryption enables computation on ciphertext; SMPC allows joint processing. Balance privacy with regulatory oversight.

Topic Digital Currencies
Exam Relevance Banking, UPSC, SSC