Ultimate access to all questions.
Explanation:
To counter the threat of unbacked crypto assets undermining monetary policy, issuing a Central Bank Digital Currency (CBDC) is the most direct and structural regulatory response. A CBDC provides the public with a safe, digital form of central bank money, preserving the role of sovereign fiat money as the primary unit of account and medium of exchange, thereby ensuring that the central bank's control over monetary policy transmission remains effective.
Q.57 A country’s central bank is concerned about the potential for unbacked crypto assets to undermine its monetary policy. They observe that a significant portion of domestic transactions are now conducted using a popular unbacked cryptocurrency. Which of the following regulatory responses would be MOST directly aimed at addressing the central bank's concern regarding monetary policy effectiveness?
A
Pegging the national currency to the most popular cryptocurrency.
B
Issuing a central bank digital currency (CBDC).
C
Limiting the size of crypto transactions through exchange platforms.
D
Imposing a cap on the total value of unbacked crypto transactions allowed per individual annually.
No comments yet.