According to recent findings from Juniper Research, digital currencies issued by central banks are expected to experience significant growth by 2030, with transactions increasing by a staggering 210,000% to a value of $213 billion.
Analysts believe that this surge will be fueled by central banks’ desire to use stablecoins to improve financial access for citizens in developing countries and to enhance the overall economic climate.
The report predicts that by 2023, transactions with central bank digital currencies (CBDC) could reach $100 million, despite being in the early stages of development.
Central banks are exploring state-owned cryptocurrencies to improve digital settlements and offer additional monetary services.
Furthermore, CBDC could be used by central banks to monitor client funds. Juniper Research expects that by 2030, 92% of CBDC transactions will be conducted domestically, with international payments becoming more prevalent in later stages of implementation.
However, Nick Maynard, author of the report, stated that payment networks must be involved in order to maximize the benefits of CBDC for international settlements.
Meanwhile, former Commodity Futures Trading Commission (CFTC) Chairman, Christopher Giancarlo, has emphasized the importance of privacy for government-issued cryptocurrencies, stating that they must include this feature to ensure user privacy.