According to research, the value of digital currency transactions issued by the central bank will reach $213 billion annually by 2030.

Central bank digital currency (CBDC) transactions, which were estimated to reach $100 million in 2023, are expected to reach $213 billion annually by 2030, according to a recent study by Juniper Research.

Although most of the digital currency projects issued by the central bank are still in their experimental stages, the projections indicated that the “dramatic growth estimated at more than 260,000% reflects the early stage of the sector.” The research also stated that adoption will be supported by governments who will take advantage of emerging technology to promote financial inclusion and increase control over how digital payments are made. The report added:

“Central bank-issued digital currencies will improve access to digital payments, particularly in emerging economies, where mobile penetration is much higher than that of banking services.”

The study also predicts that 92% of the total value of transactions that will involve CBDCs will be paid locally, with the projects primarily focused on addressing local payment challenges. Meanwhile, cross-border payments will become available later “after the establishment of systems and links between digital currencies issued by central banks used by different countries.”

“Although cross-border payments are currently characterized by high costs and slow transactions, this is not the focus of the body responsible for developing the central bank digital currency,” report author Nick Maynard noted, adding, “Given that the adoption of digital currencies If issued by a central bank will be country-specific, cross-border payment networks will have to link the schemes together, allowing the broader payments sector to benefit from digital currencies issued by central banks.”

However, the report noted that the lack of development of commercial CBDC-related products is a major hurdle faced by the current market, noting that there are not many well-defined platforms available for central banks to use.

It is worth noting that as of March 2023, more than 114 countries, more than 95% of global GDP, have begun to explore CBDCs, according to the Atlantic Council. Of the total number of countries, 11 have already fully launched their digital currency.

Related Article: Saudi Central Bank Explores Uses of Central Bank Digital Currency

Many countries in the Middle East and North Africa, such as the United Arab Emirates, Saudi Arabia, and Algeria, have already started exploring different use cases for CBDCs.