• Research and market intelligence firm Juniper Research published a report Monday showing that payments via central bank digital currencies (CBDCs) are expected to reach $213 billion annually by 2030.
• The research found that 92% of the total value transacted via CBDCs will be paid domestically.
• According to the Atlantic Council’s central bank digital currency tracker, 114 countries representing over 95% of global GDP are currently exploring a CBDC with 11 countries having fully launched a digital currency.
Central Bank Digital Currency Transactions
A new study conducted by research and market intelligence firm Juniper Research shows that payments through central bank digital currencies (CBDCs) are projected to reach $213 billion annually by 2030. Furthermore, 92% of the total value transacted through CBDCs is expected to be paid domestically.
Value of Payments
The research found that the value of payments made with CBDCs will increase from $100 million in 2023 to $213 billion in 2030, which translates into an increase of over 260,000%. This growth can largely be attributed to governments utilizing CBDCs as a way to improve financial inclusion and gain more control over how digital payments are made.
Cross-Border Payments
The study also revealed that cross-border payments initially have high costs and slow transaction speeds but this area is not the main focus for CBDC development as adoption will be country specific. It is therefore up to cross-border payment networks to link schemes together in order for the wider payments industry to benefit from CBDCs.
Global Status
According to data from the Atlantic Council’s Central Bank Digital Currency Tracker, 114 countries representing over 95% of global GDP are currently exploring a CBDC while 11 countries have fully launched their own version of it.
Product Development
An obstacle hampering current market growth is the lack of commercial product development for CBDCs as there are few well-defined platforms available for central banks use yet.