The global CBDC transaction volume will reach US $213 billion by 2030

On March 14, according to Juniper Research, the total annual value of transactions using the Central Bank Digital Currency (CBDC) will increase from US $100 million to US $213 billion in 2030. In addition, with the development of cross-border CBDC payment system, the proportion of domestic CBDC payment in the total transaction volume will decrease from “nearly 100% in the current pilot stage” in 2023 to 92%.

Interpretation of this information:

The rise of Central Bank Digital Currency (CBDC) has been a hot topic in the financial world, often touted as the future of money. Juniper Research predicts that the total annual value of transactions using CBDC will grow dramatically, from US $100 million in 2021 to US $213 billion in 2030. This trend suggests that CBDC is steadily gaining traction and may revolutionize the way people make transactions.

The idea of CBDC emerged as a response to the growth of cryptocurrencies like Bitcoin. While cryptocurrencies generally lack the stability and backing of fiat currencies, CBDCs are issued by central banks, offering additional security and reliability in transactions. CBDCs are digital forms of fiat currencies that can be used for peer-to-peer transfers, online shopping, and other transactions. They offer several advantages, such as faster execution time, lower transaction costs, and greater transparency.

Juniper Research’s report further highlights the potential growth of CBDCs in cross-border transactions. With the development of cross-border CBDC payment systems, the proportion of domestic CBDC payments in the total transaction volume is expected to decrease from nearly 100% in 2023 to 92%. This implies that cross-border transactions will play a more significant role in the future of CBDCs.

However, there are challenges in widespread adoption of CBDCs. One concern is the impact it may have on monetary policy, as the introduction of CBDCs may destabilize the demand for central bank reserves. Additionally, security concerns regarding hacking and data privacy breaches remain a significant challenge.

Overall, the growth of CBDCs represents a significant shift in the financial landscape. While there are still hurdles to overcome, CBDCs have the potential to improve efficiencies in transaction processing, and increase the accessibility of financial services.