Payments via central bank digital currency (CBDC) are expected to reach $213 billion annually by 2030, according to a new study. Additionally, the study found that 92% of the total amount transacted via CBDC will be paid domestically.
$213 billion {/netabare} per year
Research and market intelligence firm Juniper Research released a report on central bank digital currencies (CBDCs) on Monday. The firm writes:
The value of payments through CBDC (Central Bank Digital Currency) is expected to grow from $100 million in 2023 to $213 billion annually by 2030. This rapid growth of over 260,000% reflects the early stages of the sector, which is currently limited to pilot projects.
“The government will leverage CBDC to promote financial inclusion and facilitate adoption by managing digital payment methods,” the company added.
“CBDC will improve access to digital payments, especially in emerging economies where mobile penetration far exceeds banking penetration.
In addition, Juniper Research elaborates.
According to the study, by 2030, 92% of transaction value via CBDC will be paid domestically. This reflects a change from almost 100% in the current pilot phase as of 2023.
Initially, central bank digital currencies (CBDCs) issued by central banks will focus primarily on addressing domestic payment challenges, with cross-border payments expected to follow “once the system is established and linked among the CBDCs used by countries,” the study indicates.
“Cross-border payments are currently expensive and transaction speeds are slow, but this area is not the focus of CBDC development,” report author Nick Maynard elaborated.
The adoption of CBDC is so country-specific that cross-border payment networks need to coordinate their schemes so that the broader payments industry can benefit from CBDC.
The research firm also noted that the lack of commercial product development for CBDC is the main constraint in the market today, adding that there are few clearly defined platforms for central banks to use.
According to the Atlantic Council’s Central Bank Digital Currency Tracker, 114 countries representing over 95% of global GDP are currently considering CBDCs. Another 11 countries have fully launched their digital currencies.
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