Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBIandrsquo;s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of Englandandrsquo;s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: andldquo;You could think of giving your children pocket money, but programming the money so that it couldnandrsquo;t be used for sweets.andrdquo;There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, andldquo;programmable digital currencyandrdquo; is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizensandrsquo; communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer?

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Direction: Read the following passage carefully and answer the questions given below:

In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e₹-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e₹-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”

There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.

Q. What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?

a)
CBDCs may lead to a loss of monetary authority for the government.
b)
CBDCs are not as efficient as private currencies like cryptocurrencies.
c)
CBDCs eliminate the risk of government surveillance and data collection.
d)
CBDCs promote financial inclusion and economic stability.

Correct answer is option 'A'. Can you explain this answer?

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Direction: Read the following passage carefully and answer the questio...

The primary concern raised in the passage is the potential loss of monetary and fiscal authority for the sovereign government in the face of private currencies such as cryptocurrencies. The passage suggests that CBDCs, like the Indian version known as e₹-R, are seen as a necessary response to this threat. However, the passage also highlights that this is not a straightforward solution, and there are larger implications to consider. The government's dominance in the debate, driven by the interests of finance capitalists, may not fully address concerns such as government surveillance and the curtailment of individual freedom. Therefore, option A is the correct answer as it reflects the central concern of CBDCs potentially leading to a loss of monetary authority for the government.

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.Based on the information provided in the passage, which of the following statements can be inferred?

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.According to the passage, what is a plausible motive for the sovereign government to introduce CBDCs?

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.According to Sir Jon Cunliffe, the Deputy Governor for Financial Stability at the Bank of England, what is one possibility related to a digital currency in the United Kingdom?

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.In the context of the passage, what can be deduced from Sir Jon Cunliffes statement, "You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets."

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Directions: Read the following passage and answer the question.Cryptocurrencies are a terrible thing. They are the essence of a Ponzi scheme whose value is based entirely on a greater fool prepared to buy it. The promise of alchemy-turning lead into gold has bewitched humanity throughout the ages and cryptocurrencies are just the latest alchemy. Do not get me wrong, if rich people want to lose their money, in this or any other way, they should be allowed to do so. The rich should be the vanguards of new things in case something unforeseen and good falls out of them. But we need to protect those vulnerable consumers whose lives are such that almost any get-rich-quick schemes will be seductive, and seven out of 10 times, they will lose their life savings. Cryptocurrencies are todays South Sea Bubble – one of the earliest recorded financial bubbles that took place in the 1720s Britain. Meme-based currencies like Dogecoin, Dogelon Mars and Doge Dash remind me of the infamous plan of one company during the South Sea Bubble to raise money for carrying on an undertaking of great advantage but nobody to know what it is.The cryptocurrency bubble is worse than tulip mania. Through the veil of technology, cryptocurrency enthusiasts are leaning on policy-makers to permit them to be exempt from regulation, privatize money, and make money so disconnected from the economy that it would reap financial disaster. There are many reasons to avoid financial disasters, but one of them is that they ratchet up poverty and inequality. The current money-credit system is not perfect, but like democracy, it is the worst system barring all the others. It has evolved from the ashes of the system cryptocurrency enthusiasts are trying to resurrect.The current system is vulnerable to attack because money is little understood. Cryptocurrency enthusiasts have attracted a following based on the fiction that the central bank or government creates money and are busy debasing it in their self-interest. This is not the case, but then again, there is some overlap between cryptocurrency advocates, conspiracy theorists, and anti-vaxxers. The time has come for someone to stand up for the current fiat money system and explain that while it could be better still, it has been associated with far more growth, much more distributed, and has responded better to economic crisis than what came before.In todays money-credit system, banks create money when they issue a loan and place the loans proceeds into the account of their customers, creating a deposit. Money is, in fact, a tradable debt. The banks deposit can be used as cash because the bank is a regulated issuer of loans and deposit-taker, which gives the deposit credibility and convertibility. The central bank only influences the creation of money indirectly by its regulatory requirement that a proportion of the loans need to be funded by shareholders profits. They need to have skin in the game. Money creation then is based on thousands of separate decisions by loan officers and is more distributed than a centralized algorithm like Bitcoin. And its supply is determined by the private demand for loans, which means it is closely aligned to the economy.Q. Which rhetorical device is employed in cryptocurrencies are just the latest alchemy?

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer?

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Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer?.

Solutions for Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following passage carefully and answer the questions given below:In view of the threat posed by private currencies such as cryptos, CBDCs (Central Bank Digital Currency) may seem to be the need of the hour to meet the threat of loss of monetary and later fiscal authority of the sovereign. There are no two opinions on the efficacy of the CBDCs (the Indian version being e-R) if juxtaposed only against the use of private currencies. In that case, the RBI’s e-R pilot is a welcome step. However, the story does not end there. One has to be essentially naive to ignore the larger implications of the overall political economy of digitalisation being attempted in a class-ridden capitalist economy in the neoliberal era. The way the debate is being put across by mainstream media, it appears that as bona fide citizens our choice is limited: digitalise or perish. In such a debate, the dominant voice, as usual, is of the government and of interests represented by finance capitalists. The increasing question and danger of surveillance by the government and curtailment of individual freedom are now expectedly occupying a back seat. However, the danger is real, even with CBDCs. Interestingly, while discussing the possibility of a CBDC in the United Kingdom in 2021, Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, said that programming a digital currency for commercial or social purposes was something the British government needed to consider. He said: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.”There is another danger of data being collected and eventually used while one transacts on a digital platform, unlike in cash/currency transactions, where such possibility is eliminated ab initio. So, “programmable digital currency” is a real danger that will likely be a reality in the neoliberal era. Despite the advantages of a digital rupee, there is clear and present danger that its use would be closely monitored by the state, thereby leading to curtailment of individual freedom, huge abuse of data mining, and exponential growth of businesses based on digitalisation. In a country like India, with the existence and frequent reported abuses of the Telegraph Act, 1885, (notwithstanding the safeguards introduced following a Supreme Court judgment in 2007) to eavesdrop on citizens’ communications, the danger of surveillance by the state even in bona fide private exchange of digital currency is a cause for concern despite the assurances given by the RBI Governor.Q.What is the main concern raised in the passage regarding Central Bank Digital Currencies (CBDCs)?a)CBDCs may lead to a loss of monetary authority for the government.b)CBDCs are not as efficient as private currencies like cryptocurrencies.c)CBDCs eliminate the risk of government surveillance and data collection.d)CBDCs promote financial inclusion and economic stability.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CLAT tests.

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