The value of payments made through Central Bank Digital Currencies (CBDCs) will reach $213 billion annually by 2030, up from $100 million in 2023, according to new research.

A new study by Juniper Research says that this 260,000 per cent “radical growth” reflects the fact that the sector is in its early stages and is currently limited to pilot projects.

While Brasil, Australia, and Japan have all launched CBDC pilot programmes already this year, HM Treasury and the Bank of England are consulting on a digital pound which would be used by households and businesses for everyday payments in-store and online.

Juniper Research says that further adoption will be driven by governments using CBDCs to improve financial inclusion and increase control over how digital payments are made.

CBDCs could help boost access to digital payments in emerging economies, where mobile penetration is higher than banking penetration.

The research also suggests that by 2030, 92 per cent of the total value transacted via CBDCs will be paid domestically, a decrease from nearly 100 per cent during pilot stages as of 2023.

As CBDCs are issued by central banks, they will generally target domestic payment challenges initially. Cross-border payments may come later after systems have become more established.

“While cross-border payments currently have high costs and slow transaction speeds, this area is not the focus of CBDC development," said Nick Maynard, author of the report. "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.”

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