Central Bank transactions in digital currencies projected to reach $213 billion annually by 2030, research shows – Selected Bitcoin News
A new study shows payments via central bank digital currencies (CBDCs) are expected to reach $213 billion annually by 2030. Additionally, 92% of the total value transacted through CBDCs is paid domestically, the research found.
$213 billion annually
Research and market research firm Juniper Research published a report on central bank digital currencies (CBDCs) on Monday. The company 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 is being driven by governments using CBDCs to promote financial inclusion and increase control over how digital payments are made,” the company added. “CBDCs will increase access to digital payments, particularly in emerging markets; where mobile penetration is significantly higher than banking penetration.”
In addition, Juniper Research stated:
Research has found that by 2030, 92% of the total value transacted through CBDCs will be paid domestically. This reflects a nearly 100% change during the current pilot phases from 2023 onwards.
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 later “as systems become established and connections between CBDCs used by individual countries are established become,” the study shows.
“While cross-border payments currently involve high costs and slow transaction speeds, this area is not the focus of CBDC development,” said report author Nick Maynard, stating:
Since CBDC adoption will be very country-specific, it will be up to cross-border payment networks to connect systems; so that the broader payments industry can benefit from CBDCs.
The research firm also noted that the lack of commercial product development for CBDCs is a key impediment in the current market, adding that there are few well-defined platforms that central banks can leverage.
According to the Atlantic Council Central Bank Digital Currency Tracker, 114 countries representing over 95% of global GDP are currently investigating a CBDC. In addition, 11 countries have fully adopted a digital currency.
Do you think CBDCs will dominate digital payments? Let us know in the comment section below.
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Source: Crypto News Deutsch
