The research found that payments made with central bank digital currencies (CBDCs) will take off and reach $213 billion a year by 2030. And, out of all the money sent with these special currencies, 92% will stay within the same country.
Central Bank Digital Currency
A study released Monday by a research and data firm called Juniper Research said that payments made using digital currencies run by central banks could be worth 213 billion dollars each year by the year 2030. That’s up from just 100 million dollars in 2023, which is an increase of over 260,000%. This rapid growth shows that this sector is still in its early stages and only involved in test projects right now.
Governments are predicting a major increase in the use of digital payment systems, especially in less developed countries. This is because these systems give them more control and will help people without bank accounts access to make payments digitally. Plus, many countries have higher mobile phone usage than bank usage, so this system benefits them too.
By the year 2030, most of the money that people are going to spend on things will be sent in the same country. This is different than how things work today but it should change by 2023.
At first, digital currencies created by central banks will mainly be used to help solve domestic payment issues. After these systems have been set up and connections established between the individual countries’ digital currencies, then cross-border payments will start happening.
“Cross-border payments cost a lot and take long times right now. But don’t worry, this is not what CBDC development is trying to focus on,” according to Nick Maynard. He added that it’s each country’s responsibility to connect their payment networks together in order to make use of the advantages that CBDCs bring.
A research firm said that not many products have been developed yet for a type of money known as “central bank digital currency” (CBDC). Almost all countries around the world – representing 95% of global economic wealth – are looking into this type of money, but only 11 have already successfully launched it.
Do you think digital payments will be taken over by CBDCs? Let us know what you think in the comments section!