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Q.1 Discuss the various implications of using digital currencies on Indian society. (10 Marks)

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Staff @CD

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Mentor’s Comments-

  • Start by explaining the emerging concept of central bank digital currency (CBDC).
  • In the body, first, in brief, write about the technology behind CBDC digital instruments – Blockchain giving rise to secure digital instruments. Next, write about potential benefits that society can accrue from CBDC- financial inclusion, the cashless society, decrease the cost of printing, expanding the digital economy and empowering citizens etc. Next, write about potential challenges with regard to CBDC. User adoption, security, complexity, domination by Chinese and opportunity cost due to RBI’s reluctance etc.
  • Conclude with a way forward as to how India should step up to CBDC.

 

Comments

10 responses to “Q.1 Discuss the various implications of using digital currencies on Indian society. (10 Marks)”

  1. Uttara Maji Avatar
    Uttara Maji

    pay idpay_Ji250IyAb8rte6

    1. Staff @CD Avatar
      Staff @CD

      Uttara

      Decent attempt, but your answer seems focussed on only cryptocurrency.
      In intro, you can talk about RBI’s plan to launch digital currency, try to mention some fact aur current affairs in intro to make it more impactful.
      Benefits are fine, point no. 2,4 can be excluded because that is crypto-specific. Relate blockchain to technical advancement. You can mention financial inclusion/awareness here only- question is about societal benefits so more of those should be included rather than economic. Prevention of money laundering etc can also be mentioned. Point regarding employment is good.
      Challenges mentioned are fine.
      Conclusion is also decent. Overall, presentation is good, content can be a bit more broad.
      Keep practicing. 🙂

      4.5/10

  2. Deepti Maurya Avatar
    Deepti Maurya

    order id 567108

    1. Staff @CD Avatar
      Staff @CD

      Deepti

      You have written well, however, try to complete your answer inside 2 pages for a 10 mark question.
      Introduction is a bit lengthy, first para can be made concise, technological advancement can be mentioned as beneficial impacts on society. Also, dilemma part can be corrected.. Already announcement has been made in budget.
      Next two parts are fine. You have mentioned good points, role in prohibition of money laundering, counterfeit currency crimes can be mentioned. This can help in making society more secure. Impact on employment can be mentioned with the advance in tech. Other points are good.
      Challenges part is okay, conclusion can again be shortened a bit.
      Keep practicing. 🙂

  3. Shambhu Nath Avatar
    Shambhu Nath

    Order no: 0000568009

    1. Staff @CD Avatar
      Staff @CD

      Shambhu

      Decent attempt. Introduction is fine.
      However, after that, first mention the benefits. That is the core demand of the question and should be tackled first. Points in benefits are good. Role in prohibition of money laundering, counterfeit currency crimes can be mentioned. This can help in making society more secure. Impact on employment can be mentioned with the advance in tech.
      Challenges are also fine. The paragraph that you have written before concluding is not required as such. You can pick points from there and add it to respective subsections.For example, opportunities due to blockchain can be mentioned in benefits, limitations of R&D in challenges etc
      Conclusion is fine.
      Keep practicing. 🙂

      4.5/10

  4. Anshuman Kumar Avatar
    Anshuman Kumar

    Razor ID – 570724

    1. Staff @CD Avatar
      Staff @CD

      Anshuman

      Good attempt. Both content and presentation are good.
      Introduction is fine. Points mentioned in benefits are also fine. Role in making the society more secure can be talked about by mentioning prohibition of money laundering, counterfeit currency etc. Employment related points can be mentioned.
      Other points are good.
      Challenges and conclusion part is also fine.
      You are writing well. Keep it up.

      5.5/10

  5. Pranav Shirke Avatar
    Pranav Shirke

    razor id 216516833611

    1. Staff @CD Avatar
      Staff @CD

      Pranav

      Decent attempt. Introduction and conclusion are good.
      Challenges are also fine.
      However, some more points should be included in benefits.
      That is the crux of the questions and multiple dimensions should be explored. Role in making the society more secure can be talked about by mentioning prohibition of money laundering, counterfeit currency etc. Advancement in science and tech(blockchain) and its impact can be talked about- more skilled jobs etc.
      Also you can talk about scope of financial inclusion/awareness( however this can also act as one of the challenges). Transparent governance can also be mentioned.
      Structure of your answer is good though.
      Keep practicing. 🙂

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