- Central banks worldwide have been investigating the potential of digital currencies.
- Financial leaders have been anticipating impacts on business, finance, and society due to CBDCs.
- Over 114 countries have been exploring CBDCs.
The fusion of blockchain technology and the global shift away from traditional cash transactions has ignited an unprecedented wave of innovation. Blockchain technology’s convergence and the global decline in cash usage have catalyzed the research and development of Central Bank Digital Currencies (CBDCs), according to Ripple.
Ripple Predicts CBDC Payments to Soar to $213 Billion by 2030
In a blog post dated September 19, 2023, Ripple reports that nine out of ten central banks are presently exploring the potential of CBDCs. Additionally, Juniper Research predicts that CBDC payments will reach $213 billion by 2030, a sentiment mirrored in Ripple’s New Value Report.
Ripple’s New Value Report discloses that over 90% of surveyed financial leaders anticipate a significant impact on business, finance, and society from digital assets like CBDCs within the next three years. Furthermore, Ripple notes that over 80% of these leaders intend to integrate cryptocurrencies, stablecoins, or CBDCs into their operations soon.
Ripple Reveals Major CBDC Exploration in 114 Countries
As of June 2023, Ripple reports that more than 114 countries, representing over 95% of the world’s GDP, are at various stages of CBDC exploration. According to the Atlantic Council, 11 nations have fully launched their digital currencies, while 20 are poised to initiate substantial CBDC pilot programs this year.
Ripple underscores China’s leadership in this arena, with monthly digital yuan transactions exceeding $3.6 billion. Even smaller nations like Palau are exploring how digital currencies can bolster sustainability and foster financial inclusion.
On the Flipside
- While CBDCs are gaining momentum, concerns about their potential impact on traditional banking systems exist.
- Not all central banks are embracing CBDCs at the same pace. Some nations remain cautious, citing potential risks and uncertainties in adopting this technology.
- CBDCs could provide governments more direct access to individuals’ financial transactions, leading to surveillance and personal data security worries.
Why This Matters
The surge in CBDC exploration, as highlighted by Ripple’s latest findings, signifies a pivotal moment in the evolution of global finance. With most financial leaders envisioning substantial impacts from CBDCs on business and society soon, this trend underscores the crypto realm’s increasing relevance in shaping the broader financial landscape.
To learn more about Mastercard’s involvement in the CBDC revolution with Ripple and ConsenSys, read here:
Mastercard Eyes CBDC Revolution with Ripple and Consensys
For insights into how Ripple’s Liquidity Hub is streamlining trading in Brazil and Australia, check out this recent event:
Ripple’s Liquidity Hub to Streamline Trading in Brazil and Australia