Denmark’s central bank says the country’s limited use of stablecoins poses no immediate threat to domestic financial stability, but rapid growth in US dollar-pegged digital currencies could expose it to financial market volatility and liquidity risks.
Danmarks Nationalbank issued the warning in an analysis published on 9 September, urging authorities to monitor developments closely despite the negligible role stablecoins currently play in Denmark.
Dollar-backed stablecoins grew sharply worldwide towards the end of 2025, the central bank said. In Denmark, however, adoption remains very limited and there is currently no stablecoin denominated in Danish kroner.
That situation could change as commercial banks, financial companies and newer payment applications begin to incorporate stablecoin infrastructure, the analysis added.
Use of stablecoins by Danish consumers and businesses is currently too small to threaten domestic financial stability. But wider international adoption, particularly of US dollar-denominated tokens such as USDT and USDC, could create indirect vulnerabilities.
Danmarks Nationalbank warned that disruption in overseas stablecoin markets could spread through global liquidity channels and the US financial system, creating consequences for Denmark even without significant domestic use.
The analysis follows a study published several months earlier which estimated that 4% of people in Denmark owned cryptocurrency in 2025. That figure was below an earlier estimate from the Ministry of Taxation, which put ownership at 6% in 2024.
Crypto ownership in Denmark was also considerably lower than in Norway, where it stood at about 11%, according to the study.
Danmarks Nationalbank said stablecoins should not replace central bank reserves as the main settlement asset for transactions between banks. The bank is working with the European Central Bank (ECB) to keep central bank money available as the financial system becomes increasingly tokenised.
Market capitalisation figures cited in the analysis showed that growth has been led mainly by major US dollar-backed stablecoins. Euro-denominated tokens and stablecoins tied to other fiat currencies account for only a small share of the overall market.
Although Denmark’s payments system remains robust and efficient, the central bank said more widespread access to foreign stablecoins could eventually affect domestic payment flows, the business models of commercial banks and the way monetary policy is transmitted.
Danmarks Nationalbank said it takes a “technology-neutral approach” to innovation in digital money and recognised that distributed ledger technology could improve cross-border payments and asset tokenisation.
It nevertheless said central bank money must remain at the heart of the financial system.
“Central bank money should remain the common foundation for stability and trust in the monetary system and the primary settlement asset between banks.”
The bank said its work with the ECB would help wholesale central bank liquidity clear smoothly across tokenised payment systems, reducing the risk of private stablecoin issuers replacing public money at the centre of the financial system.
European Central Bank Executive Board member Isabel Schnabel said: “Central bank reserves remain superior to stablecoins as the ultimate settlement asset…”
