A multinational corporation is considering using a digital currency for cross-border supplier payments. The corporation's treasury team values predictability and regulatory certainty. Which digital currency approach is most appropriate?

Use a utility token from a blockchain platform for payments

Use a well-regulated stablecoin backed by a major fiat currency

Use a privacy-focused cryptocurrency to protect supplier identities

Use Bitcoin and hedge the price volatility with derivatives

A payment processor is losing market share to decentralized finance (DeFi) lending platforms that offer higher interest rates to depositors. The processor's management wants to respond without abandoning its core business. Which strategy is most aligned with the processor's strengths?

Increase deposit rates using the processor's own reserves

Lobby regulators to restrict DeFi platforms

Acquire a DeFi platform and operate it separately

Offer a high-yield savings product that uses DeFi protocols in the backend while maintaining a regulated front end

A fintech startup is planning to offer a digital currency wallet that supports multiple cryptocurrencies. The startup is based in the EU and plans to serve customers globally. Which compliance measure is most critical for the startup to implement before launch?

Register as a payment institution with the European Central Bank

Ensure all customer data is stored on servers within the EU

Obtain a banking license in every country where it operates

Implement a robust Know Your Customer (KYC) and Anti-Money Laundering (AML) program

A digital currency exchange is required by regulators to implement the 'travel rule' for transactions above a certain threshold. The exchange's current system does not share customer information with counterparties. What should the exchange do?

Ask customers to use a different exchange for large transactions

Use a privacy coin to avoid the travel rule

Implement a system that securely shares required customer information with counterparties for qualifying transactions

Refuse to process transactions above the threshold

EC-CouncilBlockchain Fintech Certification

Domain 6Objective 1

Evolution and Role of Digital Currencies in Finance BFC Practice Questions (Page 2)

Part of the Digital Currencies and Cryptocurrencies domain, which makes up ~15% of our current practice bank.

43questions here

9free pages

4concepts

Questions 6–10

6application · medium
A multinational corporation is considering using a digital currency for cross-border supplier payments. The corporation's treasury team values predictability and regulatory certainty. Which digital currency approach is most appropriate?
Select an answer first
7application · medium
A payment processor is losing market share to decentralized finance (DeFi) lending platforms that offer higher interest rates to depositors. The processor's management wants to respond without abandoning its core business. Which strategy is most aligned with the processor's strengths?
Select an answer first
8application · medium
A fintech startup is planning to offer a digital currency wallet that supports multiple cryptocurrencies. The startup is based in the EU and plans to serve customers globally. Which compliance measure is most critical for the startup to implement before launch?
Select an answer first
9application · medium
A digital currency exchange is required by regulators to implement the 'travel rule' for transactions above a certain threshold. The exchange's current system does not share customer information with counterparties. What should the exchange do?
Select an answer first
10foundation · easy
Which function of money is being performed when a digital currency is used to price goods in an online marketplace?
Select an answer first

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