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.
$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.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimer