CBDC transactions set to soar, reaching 7.8 billion by 2031

By Gloria Methri

Central Bank Digital Currencies (CBDCs) are on track to become a major force in global payments, with transaction volumes projected to surge by 2,430% by 2031, according to new data from Juniper Research.

The report highlights key drivers, including central bank efforts to secure monetary sovereignty and a strategic pivot towards simplified, cost-effective cross-border transactions.

According to the study, global CBDC transactions are expected to jump from 307.1 million in 2024 to a staggering 7.8 billion by 2031, underscoring a digital payments revolution led by central banks. The rapid shift is attributed mainly to the need for central banks to reclaim control from the growing influence of card networks and stablecoins, which have reshaped how payments flow across borders.

Cross-Border Transactions at the Core of CBDC Adoption

With the promise of seamless and efficient international transfers, CBDCs are increasingly attractive to businesses and remittance providers facing high fees and convoluted intermediary processes. The report predicts that the adoption of CBDCs and stablecoins for cross-border payments will save the global economy a substantial $45 billion by 2031.

“Emerging payment technologies like CBDCs and stablecoins are not only cost-efficient but also set the stage for a more inclusive global economy,” said Lorien Carter, author of the Juniper report. “By streamlining international payments and reducing dependence on the US dollar, these digital currencies can reshape the financial landscape and bolster economic connectivity across borders.”

Bridging Digital Islands through Interoperability

However, the report stresses that CBDCs alone are not a silver bullet. To truly unlock cross-border potential, interoperability is essential. Collaborative projects, such as mBridge and Project Icebreaker, are pioneering the path forward, enabling national CBDCs to operate in tandem and reduce reliance on conventional payment networks. The Bank for International Settlements (BIS) and other global financial bodies are working to create interoperability standards, which will be critical to prevent the formation of fragmented “digital islands” and enable CBDCs to realise their full potential.

The report advises that CBDC vendors engage actively with such initiatives, integrating their systems into a cohesive global framework that facilitates smooth inter-country transactions. Without this coordination, the report warns, the world could face a splintered digital currency landscape that lacks the efficiencies CBDCs were created to achieve.

Outlook for CBDC-Driven Financial Inclusion

Beyond technical infrastructure, CBDCs hold broader implications for financial inclusion and the growth of the digital economy, particularly in emerging markets. By eliminating intermediaries and slashing transaction fees, CBDCs and stablecoins can make international trade and remittances more accessible, particularly for regions traditionally underserved by traditional banking systems.

As central banks and global bodies move to define the future of digital currency, the race to develop CBDCs signals a paradigm shift towards a new era of digital monetary control, financial inclusion, and economic modernisation.

Juniper Research highlights that this transformation could significantly impact financial sovereignty and reshape the way international payments are conducted by 2031.