Question

Which country was the first to launch its central Bank Digital Currency?

• A. USA
• B. China
• C. Bahamas
• D. Russia

Hint:

It's important to distinguish between a CBDC and a cryptocurrency. A CBDC is centralized and state-backed (like paper money, but digital). Cryptocurrencies are typically decentralized and not issued by a government.

Answer 1

The Correct Option is C

Step 1: Understand Central Bank Digital Currency (CBDC). A CBDC is a digital form of a country's official currency (like a digital Rupee or digital Dollar). Unlike cryptocurrencies like Bitcoin, a CBDC is issued and backed by the country's central bank, making it legal tender.

Step 2: Identify the first country to launch a nationwide CBDC. While major economies like China are running large-scale pilot projects, the first country in the world to officially launch a nationwide CBDC was The Bahamas.

Step 3: Know the name and launch date of the first CBDC. The Bahamian CBDC is called the "Sand Dollar." It was officially launched across the islands of The Bahamas in October 2020, making it the pioneer in this field.