Danmarks Nationalbank, Denmark's central bank, has warned that the global expansion of dollar-denominated stablecoins poses potential risks to financial stability, despite their negligible presence in the Nordic country.
In an analysis published September 9, the central bank noted that stablecoin adoption in Denmark remains very limited, with no Danish krone-denominated stablecoin currently in circulation. However, officials cautioned that adoption could accelerate as commercial banks and financial firms begin integrating stablecoin infrastructure.
While stablecoin usage among Danish consumers and businesses is currently minimal and poses no immediate threat to domestic stability, the central bank warned that higher global adoption of tokens like USDT and USDC could create indirect vulnerabilities. Turmoil in foreign stablecoin markets could trigger spillovers through global liquidity channels and the U.S. financial system.
The analysis reflects broader cryptocurrency adoption patterns in Denmark. A recent study found that cryptocurrency ownership in the country stood at 4% in 2025, slightly lower than the Ministry of Taxation's estimate of 6% in 2024. Cryptocurrency ownership in Scandinavian Norway reached approximately 11%, significantly higher than Denmark's figure.
Central Bank Money as Foundation
Danmarks Nationalbank stressed that stablecoins should not replace central bank reserves as the core settlement asset for interbank transactions. The bank is partnering with the European Central Bank to ensure central bank money remains accessible in an increasingly tokenized financial ecosystem.
While acknowledging operational efficiencies that distributed ledger technology can bring to cross-border payments and asset tokenization, the central bank drew a clear distinction: central bank money should remain the common foundation for stability in the monetary system and the primary settlement asset between banks.
Market capitalization data cited in the report shows growth driven primarily by major U.S. dollar-backed stablecoins, while euro-denominated and other fiat-pegged stablecoins represent only a fraction of the total market.
The central bank warned that wider availability of foreign stablecoins could eventually influence local payment flows, commercial bank business models, and the transmission of monetary policy. Ongoing work between Danmarks Nationalbank and the ECB aims to ensure wholesale central bank liquidity can clear seamlessly across tokenized payment rails.
