- According to a recent research, Ripple has now been ranked as an established leader for Central Bank digital currencies (CDBCs)
- Ripple is well positioned to pioneer growth in the CBDC ecosystem, which is projected to $213 billion in annual payments by 2030.
The central bank digital currency ecosystem is growing in leaps and bounds as many countries open their doors to fiat-backed digital currencies.
With assets like Bitcoin and Ethereum posing as risky assets due to the intense market volatility, countries looking to stabilize their economies and take a safer path are opting for CBDCs as an alternative.
This promising industry is one that Ripple has been a part of for the past few years. It is now being reported that Ripple could pioneer growth in the CBDC market even further in the long term.
Anthony Welfare, an enterprise blockchain leader and the current CBDC advisor at Ripple brought attention to recent research centering on Ripple. According to the research, Ripple was ranked number one and an established leader for CBDC from 15 vendors.
The research stated that Ripple was ranked highly for a myriad of reasons, including the fact that its existing success with RippleNet and its technological capabilities within the space. Ripple also managed to attain this position, thanks to its existing deployments and growth within the emerging space.
@Ripple was ranked number one and an established leader for #CBDC (from 15 vendors)👍 In a recent report from @juniperresearch highlighting the significant transaction growth to $213bn by 2030 Globally👌https://t.co/CBNvelrhWQ pic.twitter.com/YVA2paoIAQ
— Antony Welfare (@AntonyWelfare) May 3, 2023
The CDBC ecosystem is projected to record billions in annual transactions
As Juniper Research noted in its recent piece, key players in the market are predicting that CBDC payments will cross $200 billion in the next 7 years.
The new study from Juniper Research, foremost experts analysing the fintech & payments market today, found that the value of payments via CBDCs (Central Bank Digital Currencies) will reach $213 billion annually by 2030; up from just $100 million in 2023. This radical growth of over 260,000% reflects the early stage of the sector; currently limited to pilot projects.
Furthermore, the adoption of these digital assets will be driven by governments that are leveraging CBDCs to stimulate their financial inclusion, while boosting their control over the methods taken to carry out digital payments. Also, with CBDCs, accessing digital payments will become easier in developing countries that currently prioritize mobile penetration over banking penetration. It was also revealed that nearly all of the total value transacted using CBDCS will be carried out domestically.
The research found that by 2030, 92% of the total value transacted via CBDCs will be paid domestically. This reflects a change from almost 100% during the current pilot stages, as of 2023. Since CBDCs are issued by central banks, they will be closely targeted to domestic payment challenges initially, with cross-border payments coming later, as systems become established and links are made between CBDCs used by individual countries.