Cryptocurrency and CBDC — Mains Questions

Critically analyze the potential economic implications of the Reserve Bank of India's Central Bank Digital Currency (CBDC) on India's financial system and monetary policy. What challenges must be addressed for its successful implementation?

Compare and contrast the regulatory approaches adopted by India and other major economies (e.g., China, EU) towards cryptocurrencies and Central Bank Digital Currencies (CBDCs). Discuss the rationale behind India's evolving stance.

Blockchain technology is often hailed as a revolutionary innovation with applications far beyond cryptocurrencies. Elaborate on the core principles of blockchain and discuss its potential applications in various sectors of the Indian economy, beyond just digital currencies.