MC29. What are the potential risks associated with CBDCs?
A. They could lead to increased financial inclusion.
B. They could lead to a loss of privacy for individuals.
C. They could reduce costs associated with cash handling.
D. They could increase the risk of cyber attacks.
Answer:B
MC29. What are the potential risks associated with CBDCs?
A. They could lead to increased financial inclusion. B. They could lead to a loss of privacy for individuals. C. They could reduce costs associated with cash handling. D. They could increase the risk of cyber attacks.
Explanation: CBDCs could potentially lead to a loss of privacy for individuals as they would be able to track transactions more easily. This could be a concern for individuals who value their privacy. However, it should be noted that many central banks are working to address these privacy concerns and are exploring ways to incorporate privacy features into CBDCs.