The explosive growth of central bank digital currencies, expected to surge 2,430% by 2031, could revolutionize global payments, slashing cross-border transaction costs by billions.
The Global Payment Shake-Up: CBDCs Poised to Transform Transactions
Juniper Research, a market research and consulting firm specializing in digital technologies and innovation, released a report on Monday, forecasting a massive increase in central bank digital currency transactions. The firm estimates that “by 2031, the number of global payments made using CBDCs (central bank digital currencies) will reach 7.8 billion, up from 307.1 million in 2024.” Juniper added:
This remarkable 2,430% growth will be driven by central banks seeking to safeguard monetary sovereignty in the face of card-network dominance and growing stablecoin popularity.
As of September, 134 countries and currency unions, representing 98% of global GDP, are exploring central bank digital currencies, a significant rise from 35 in May 2020, according to the Atlantic Council. Currently, 66 countries are in advanced stages — development, pilot, or launch — with every G20 country participating. A record 44 CBDC pilots are ongoing, including China’s digital yuan and Europe’s digital euro. European countries, both within and outside the euro area, are increasingly testing wholesale CBDCs for domestic and cross-border transactions.
To achieve seamless cross-border growth, Juniper Research emphasizes the need for interoperability among CBDCs. It recommends CBDC vendors engage with initiatives led by the Bank for International Settlements (BIS) to develop shared infrastructure and standards. Without such collaborations, the CBDC ecosystem could become fragmented, leading to isolated “digital islands” and limiting the potential efficiencies in global transactions.
Juniper’s report also highlights the significant cost benefits of these digital currencies in international payments. The firm explained:
The research forecast that, through the use of CBDCs and stablecoins, cross-border payments will save $45 billion by 2031.
The report suggests that these digital assets streamline international transactions by bypassing traditional intermediaries, which currently burden remittance senders and international businesses with high fees and limited transparency.