A new study shows that payments via central bank digital currencies ( CBDCs) are expected to reach $213 billion annually by 2030. Furthermore, 92% of the total value transacted via CBDCs will be paid domestically, the research found.
Central Bank Digital Currency Transactions to Reach $213 Billion Annually by 2030, Research Shows
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
$213 Billion Annually
Research and market intelligence firm Juniper Research published a report on central bank digital currencies ( CBDCs) Monday. The firm wrote:
The value of payments via CBDCs (central bank digital currencies) will reach $213 billion annually by 2030; up from just $100 million in 2023. This radical growth of over 260,000% reflects the early stage of the sector; currently limited to pilot projects.
“Adoption will be driven by governments leveraging CBDCs to boost financial inclusion and increase control over how digital payments are made,” the firm added. “ CBDCs will improve access to digital payments, particularly in emerging economies; where mobile penetration is significantly higher than banking penetration.”
Furthermore, Juniper Research detailed:
The research found by 2030, 92% of the total value transacted via CBDCs will be paid domestically. This reflects a change from almost 100% during current pilot stages, as of 2023.
Initially, central bank digital currencies ( CBDCs) will be primarily focused on addressing domestic payment challenges due to their issuance by central banks, while cross-border payments are expected to follow subsequently “as systems become established and links made between CBDCs used by individual countries,” the study shows.
“While cross-border payments currently have high costs and slow transaction speeds, this area is not the focus of CBDC development,” report author Nick Maynard said, elaborating:
As CBDC adoption will be very country specific, it will be incumbent on cross-border payment networks to link schemes together; allowing the wider payments industry to benefit from CBDCs.
The research firm also noted that the absence of commercial product development for CBDCs is a primary constraint for the current market, adding that there are few well-defined platforms for central banks to utilize.
According to the Atlantic Council’s central bank digital currency tracker, 114 countries, representing over 95% of global GDP, are currently exploring a CBDC. In addition, 11 countries have fully launched a digital currency.
Do you think CBDCs will dominate digital payments? Let us know in the comments section below.
