UPSC CARE Mains Practice 19th December 2025
Mains Practice Questions for the Day
- What is cryptocurrency? How does it affect global society? Has it been affecting Indian society also? (UPSC CSE 2019)
- Discuss the significance of India’s first indigenous 1.0 GHz, 64-bit dual-core microprocessor DHRUV64 for India’s semiconductor self-reliance. Also examine the institutional and policy ecosystem that enabled its development. (GS Paper 3 Science & Tech Indigenisation of Technology)
1Q. What is cryptocurrency? How does it affect global society? Has it been affecting Indian society also? (UPSC CSE 2019)
Introduction:
Cryptocurrency is a digital or virtual currency secured by cryptography, operating on blockchain technology and functioning without any central authority. It enables peer-to-peer transactions through decentralized networks. As an emerging financial innovation, cryptocurrency is transforming economic interactions worldwide.
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Impact of Cryptocurrency on Global Society
1. Greater Global Integration
Cryptocurrencies bypass traditional currency barriers, enabling borderless transactions and fostering financial integration across nations.
2. New Investment Class
Crypto has emerged as an alternative asset, compared to gold. Its extreme volatility has made fortunes and caused massive financial losses.
3. Low-cost and Secure Transactions
Blockchain enables cheaper, faster, and tamper-proof transfers. It strengthens global payment systems and cross-border remittances.
4. Humanitarian & Conflict Use
During the Ukraine crisis, millions were donated in crypto due to speed and transparency, aiding relief operations.
5. Reduced Government Control
Cryptos dilute sovereign monetary authority, undermining governments’ ability to regulate currency, affecting macroeconomic stability.
6. Use in Illicit Activities
Due to anonymity, cryptocurrencies facilitate terror financing, drug trafficking, ransomware, and money laundering—posing global security threats.
7. Rising Global Inequality
Crypto adoption is skewed toward digitally literate and wealthy individuals, creating digital and financial divides.
Impact of Cryptocurrency on Indian Society
1. Rise of Crypto Community & New Opportunities
Crypto exchanges, blockchain start-ups, and fintech jobs have created a new digital ecosystem, attracting youth and investors.
2. Risk-prone Investment Behaviour
High returns have encouraged youth to invest in highly volatile assets, increasing financial vulnerability.
3. Cheaper Cross-Border Remittances
India, being the largest remittance receiver, can benefit from lower conversion and processing charges via crypto-based transfers.
4. Increased Cybercrime & Digital Extortion
India has witnessed ransomware attacks (e.g., WannaCry) where payments were demanded in crypto, increasing digital security threats.
5. Deepening Digital Inequality
Low technological access and literacy leave many Indians out of crypto use, widening socio-economic divides.
6. Regulatory Ambiguity
Government considerations such as a Cryptocurrency Bill, taxation rules, and RBI warnings reflect ongoing uncertainty, influencing societal adoption.
Conclusion:
Cryptocurrency offers transformative potential, yet carries risks of volatility, security threats, and governance challenges. For India and the world, the way forward lies in adopting a balanced regulatory framework—one that harnesses innovation, promotes consumer protection, and prevents misuse. With structured oversight, crypto can evolve into a safe and inclusive component of the digital economy.
Q. Discuss the significance of India’s first indigenous 1.0 GHz, 64-bit dual-core microprocessor DHRUV64 for India’s semiconductor self-reliance. Also examine the institutional and policy ecosystem that enabled its development. (GS Paper 3 Science & Tech Indigenisation of Technology)
Introduction:
The launch of DHRUV64, India’s first fully indigenous 1.0 GHz, 64-bit dual-core microprocessor developed by C-DAC under the Microprocessor Development Programme (MDP), marks a major technological milestone. It reflects India’s growing capability in designing advanced microprocessors essential for digital sovereignty and semiconductor self-reliance.
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- Reduces import dependency: India consumes nearly 20% of the world’s microprocessors. DHRUV64 supports digital infrastructure without relying on foreign suppliers.
- Supports critical sectors: Its modern architecture enables high-efficiency computing for 5G, IoT systems, automotive electronics, industrial automation, defence and aerospace.
- Builds indigenous capability: It adds to earlier processors such as SHAKTI, AJIT, VIKRAM, and THEJAS64, creating an evolving family of Indian-designed chips.
- Boosts human capital: Provides a modern R&D platform for India’s large pool of chip-design engineers, promoting innovation and prototyping at lower costs.
- Accelerates next-generation chips: Success of DHRUV64 has pushed forward development of Dhanush and Dhanush+ processors.
Institutional and Policy Ecosystem Enabling DHRUV64
A coordinated semiconductor framework enabled DHRUV64’s development:
- MeitY’s leadership: Through schemes like MDP, Digital India RISC-V (DIR-V), C2S, DLI and the India Semiconductor Mission (ISM), MeitY provided policy direction, funding, and long-term planning.
- C-DAC’s technical leadership: C-DAC designed processor IPs, SoCs, and development boards while advancing India’s RISC-V roadmap.
- DIR-V Programme: Enabled fabrication of THEJAS32, THEJAS64, and now DHRUV64 using open-source RISC-V architecture, removing licence costs.
- Capability-building programmes:
- C2S trained 85,000 chip-design professionals.
- INUP-i2i provided fabrication training to over 8,000 researchers.
- ISM: Facilitated ₹1.60 lakh crore investment commitments for semiconductor infrastructure.
Conclusion:
DHRUV64 is not just a technological achievement but a strategic step toward Aatmanirbhar Bharat in semiconductors. Supported by strong institutional and policy mechanisms, it signifies India’s emergence as a nation capable of designing, developing, and commercialising advanced microprocessors—laying the foundation for long-term technological self-reliance.
