CBDC Transactions to Exceed USD 213 Billion by 2030 Globally
A
new study has revealed that payments by central bank digital currencies (CBDCs) are expected to exceed
USD 213 billion annually by 2030. 92% of the total value transacted by CBDCs will be paid domestically.
Juniper Research Report
Research
and market intelligence firm Juniper Research published a report on central
bank digital currencies (CBDCs) on Monday. The report reveals:
"The
value of payments by CBDCs (central bank digital currencies) will exceed USD 213
billion annually by 2030, up from USD 100 million in 2023. The
exponential estimated growth from 100
million to 213 billion reflects the
early phase, which is largely 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 research firm has
indicated. "CBDCs will improve access to digital payments, particularly in
emerging economies where mobile penetration is significantly higher than
banking penetration."
The report highlights:
"The
research reveals that by 2030, 92% of the total value transacted by CBDCs will be paid domestically. This reflects a change from
almost 100% during the current pilot stages."
In
the early phase, central bank digital currencies (CBDCs) will primarily focus
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 between CBDCs used by individual countries
become stronger," the study details.
"While
cross-border payments currently have high costs and slow transaction speeds,
this area is not the focus of CBDC development," reports author Nick
Maynard. He explains:
"As
CBDC adoption will be very country-specific, it will be incumbent on
cross-border payment networks to link schemes together, allowing for the wider
payments industry to benefit from CBDCs."
The research firm has also revealed 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.
Atlantic Council's CBDC Tracker
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.
What
is your take on CBDCs dominating digital payments? Please post your comments.
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