UPI International Acceptance
Question
With reference to Non-Fungible Tokens (NFTs), consider the following statements: Which of the statements given above are correct?
- 1.
They enable the digital representation of physical assets.
- 2.
They are unique cryptographic tokens that exist on a blockchain.
- 3.
They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.
Options
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Explanation
Statements 1 and 2 are correct. Statement 3 is incorrect.
NFTs are unique, non-interchangeable cryptographic tokens on a blockchain representing digital or physical assets. Because they are non-fungible, they cannot be traded at equivalency (unlike Bitcoin or fiat money), meaning they cannot function as a standard medium of exchange for commercial transactions.
Answer: (a).
Question details
Year
2025
Paper
GS Paper 1
Question
Q69
Subject
Current Affairs
Sub-topic
Economy & Finance in News
Type
How-many counting
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
Digital Assets Blockchain Framework / RBI Crypto Policy 2023
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