A new study shows that payments through central bank digital currencies (CBDCs) are expected to reach $213 billion annually by 2030. Furthermore, 92% of the total value traded through CBDCs will be paid at the national level. national, according to research.
$213 billion annually
Market intelligence and research firm Juniper Research released a report on central bank digital currencies (CBDCs) on Monday. The firm wrote:
The value of payments through CBDCs (central bank digital currencies) will reach $213 billion annually by 2030; up from just $100 million in 2023. This radical growth of more than 260,000% reflects the early stage of the sector; Currently limited to pilot projects.
“Adoption will be driven by governments leveraging CBDCs to drive 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”.
Additionally, Juniper Research detailed:
The research found that by 2030, 92% of the total value traded through CBDCs will be paid out domestically. This reflects a change of almost 100% during the current pilot stages, starting in 2023.
Initially, 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 are established and links are established between CBDCs used by individual countries”. ”, shows the study.
“While cross-border payments currently have high costs and slow transaction speeds, this area is not the focus of CBDC development,” said report author Nick Maynard, explaining:
Since CBDC adoption will be very country-specific, it will be up to cross-border payment networks to link the schemes together; allowing the payment industry in general to benefit from CBDCs.
The research firm also noted that the lack of commercial product development for CBDCs is a major constraint for the current market, adding that there are few well-defined platforms for central banks to use.
According to the Atlantic Council central bank digital currency tracker, 114 countries, representing more than 95% of global GDP, are currently exploring a CBDC. Additionally, 11 countries have fully launched a digital currency.
Do you think CBDCs will dominate digital payments? Let us know in the comments section.
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