With growing momentum surrounding digital currencies, Nordic central banks are increasingly responding to the need for digital transformation in the monetary landscape. Events like NextGen Nordics at the Münchenbryggeriet in Stockholm, Sweden, on 29 April 2025, are propelling forward the discussions on their advantages and risks, especially in relation to traditional banking systems. But, as enthusiasm around CBDCs rises, so does the concern over their potential to disrupt existing financial systems, particularly through the risk of disintermediation of native banking systems.
The advantages of utilising CBDCs
By leveraging digital currencies, central banks can extend access to underserved populations, especially in regions where traditional banking infrastructure is lacking. For Nordic countries, which are already well-connected and technologically advanced, CBDCs could offer a seamless integration into digital financial services for all citizens, further reducing the barriers to accessing basic financial services. CBDCs can streamline payments by reducing the reliance on intermediaries, which can often slow down transactions and increase fees. By enabling near-instantaneous and low-cost transactions, CBDCs promise to optimise payment systems, benefiting consumers and businesses alike.
Digital currencies issued by central banks are backed by the full faith and credit of the government, minimising the risk of default compared to commercial bank-issued digital money or private cryptocurrencies. This could help stabilise the financial system and prevent future crises tied to private sector insolvencies. NextGen Nordics is a key platform in advancing discussions around CBDCs in the Nordic region. Bringing together leading central banks, fintech experts, and industry stakeholders, the event plays a pivotal role in shaping the future of digital currencies.
Retail and commercial use cases
In the retail sector, a CBDC could function as an alternative to traditional bank deposits, allowing consumers to make payments in a fully digital environment. The transition would offer the convenience of digital wallets while ensuring the safety and security of transactions, similar to cash but with all the advantages of digital technology. For commercial use, businesses could benefit from reduced transaction fees, quicker settlement times, and the ability to conduct international payments without the complexities of cross-border fees and currency exchanges.
In countries like Sweden, where cash usage has declined significantly, the transition to CBDCs seems like a logical next step in ensuring efficient and secure transactions for both consumers and businesses. However, consumer readiness remains a key question. NextGen Nordics not only serves as a forum for understanding the benefits and risks associated with CBDCs but also acts as a catalyst for innovation. By providing a space for collaboration and idea exchange, the event accelerates the momentum for central banks to begin exploring the infrastructure required for CBDCs.
Impact on native banking systems
If CBDCs allow consumers to hold digital currency directly with central banks, bypassing the need for traditional bank accounts, banks could lose out on key business functions such as lending and deposit-taking. This could fundamentally alter the banking landscape, with profound implications for the role banks play in the economy. However, this disintermediation does not necessarily spell disaster for banks. Some experts argue that banks can still thrive by adapting to the digital ecosystem. They could continue to offer value-added services, such as credit, investment advice, and financial planning, while integrating CBDCs into their existing operations.
Events like NextGen Nordics are pivotal in propelling this discussion forward, offering a space for collaboration, innovation, and practical insights that will shape the future of digital currencies. As the momentum behind CBDCs continues to build, those who embrace innovation while safeguarding privacy, security, and financial stability will likely shape the future of payments in the Nordic region and beyond.
Be part of the action and gain exclusive expert insights, invaluable networking opportunities, and the tools you need to prepare for the future of payments. Register now to secure your spot! Bank representatives can attend for free, while tickets are available for software, IT, and consultancy providers to financial institutions. This is a must-attend event – don’t miss your chance to stay ahead of the curve.