Economy
2016
Banking in India
With reference to ‘Bitcoins’, sometimes seen in the news, which of the following statements is/are correct?
- Bitcoins are tracked by the Central Banks of the countries.
- Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address.
- Online payments can be sent without either side knowing the identity of the other.
Select the correct answer using the code given below.
C.3 only
B.2 and 3 only
A.1 and 2 only
D.1, 2 and 3
Correct Answer: Option B
Bitcoins can be sent directly to anyone globally, requiring only the recipient's Bitcoin address.
This process does not necessitate revealing the sender's or receiver's identity, ensuring a degree of anonymity. Therefore, statement 2 and statement 3 are correct.
The Bitcoin system operates on a peer-to-peer network. Transactions occur directly between users, eliminating intermediaries. Central Banks do not track Bitcoin transactions. Therefore, statement 1 is incorrect.
Hence, only statements 2 and 3 are correct.
Sources:
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