GK Question

technology medium mcq

Which technology enables confidential CBDC transactions while allowing regulatory oversight?

  1. Zero-Knowledge Proofs
  2. Confidential Transactions
  3. Both A and B
  4. Neither

Answer: Both A and B

Privacy-preserving CBDC: ZK-proofs verify validity without revealing details; confidential transactions hide amounts using cryptographic commitments. Enable auditability for regulators while protecting user privacy.

Topic Digital Currencies
Exam Relevance Banking, UPSC, SSC