Consider the following statements regarding Cryptocurrencies 1 It is a digital currency in which enc...........

Current GK (IBPS-CL) Indian Economy

Consider the following statements regarding Cryptocurrencies. 1. It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. 2. Supreme Court had allowed banks and financial institutions to reinstate services related to cryptocurrencies by setting aside the RBI’s 2018 circular that had prohibited them based on the ground of “proportionality”. Which of the statements given above is/are correct?

This questions was previously asked in

IBPS Clerk Main (8th Oct 2022)

View All IBPSCl Previous Year Papers

1 only

2 only

Both 1 and 2

Neither 1 nor 2

None of the above

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Explanation:

- Cryptocurrencies are indeed digital currencies. They use encryption techniques to manage the creation of units and verify transactions. They operate independently of central banks. This makes Statement 1 correct.

- In 2020, the Supreme Court of India set aside the Reserve Bank of India's (RBI) 2018 circular. This circular had prohibited banks from dealing with cryptocurrencies based on the ground of “proportionality.” Thus, Statement 2 is also correct.

Based on these points, the correct option is:

Option: 3 - Both 1 and 2