A new study shows that payments via central bank digital currencies (CBDCs) are expected to reach $213 billion annually by 2030. Furthermore, 92% of the total value transacted via CBDCs will be paid domestically, the research found.

$213 Billion Annually

Research and market intelligence firm Research published a report on central bank digital currencies (CBDCs) Monday. The firm 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 will exist driven by governments leveraging CBDCs to boost financial inclusion and boost 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.”

Furthermore, the Research detailed:

The research found by 2030, 92% of the total value transacted via CBDCs will be paid domestically. This reflects a change from almost 100% during current pilot stages, as of 2023.

Initially, central bank digital currencies (CBDCs) will be firstly focused on addressing domestic payment challenges due to their issuance by central banks, while cross-border payments are expected to follow subsequently “ as systems come established and links made between CBDCs used by individual countries, ” the study shows.

“ Whilecross-border payments  presently have high costs and slow transaction speeds, this area isn't the focus of CBDC development, ” the report author said, elaborating:

As CBDC adoption will be very country specific, it will be incumbent on cross-border payment networks to link schemes together; allowing the wider payments industry to benefit from CBDCs.

The research firm similarly noted 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 to utilize.

According to the Atlantic Council’s central bank digital currency tracker, 114 countries, representing over 95 of the global GDP, are presently exploring a CBDC. In addition, 11 countries have fully launched a digital currency.

(Kevin Helms, Bitcoin.com, 2023)