Denmark's central bank warns: stablecoin growth may bring financial risks

Denmark's central bank warns: The surge in use of stablecoins may impact the payment system and monetary policy transmission.

Danmarks Nationalbank issued a warning that although the current use of stablecoins in Denmark is extremely limited, the sharp increase in its use may ultimately affect Denmark's payment system, financial stability and monetary policy transmission mechanism.

Current status: Danish krona denominated stablecoins absent

According to an analysis report released by Danish National Bank on September 9, stablecoins have expanded rapidly globally in recent years, especially at the end of 2025. Activity increased significantly. However, in Denmark, the adoption rate of stablecoins is still very low, and there is currently no stablecoins denominated in Danish krona in circulation on the market.

As stablecoin services become more accessible across Europe through banks, fintech companies and regulated payment infrastructure, the Danish central bank expects that the more channels provided by financial companies and new payment applications may ultimately lead to increased domestic stablecoin use.

Recently, relevant developments have entered the Danish market. On August 26, Revolut began launching EURR (a euro-pegged stablecoin) to some customers in Denmark, Poland and Portugal, and plans to expand to other European Economic Area markets in the second half of 2026. The token was issued by Stripe's Bridge Building and is designed to comply with the EU Cryptographic Asset Markets Regulation (MiCA) and maintain a value anchor of 1 euro. The move allows Danish users to access regulated euro stablecoins through large financial platforms, although Denmark currently lacks stablecoins pegged to its local currency.

Risk assessment: external spillover effects and dollar stablecoin risk

Danish National Bank pointed out that due to the small scale of domestic use, stablecoins currently have little impact on the Danish financial system. However, if adoption rates rise significantly, especially when foreign-denominated tokens become common, the risk profile may change.

The report specifically pointed out the risks of dollar-denominated stablecoins as a potential channel for external financial shocks. The central bank said market turmoil involving such tokens could spill over to Denmark through the U.S. financial system and international financial markets. This issue is closely related to the size and currency composition of global markets. Currently, dollar-linked tokens still dominate the market value of stablecoins, while euro-denominated alternatives account for only a small proportion.

Despite this, euro stablecoins are also expanding under the MiCA regulatory framework. Decta data shows that in the year ended June 28, 2026, the market value of eight MiCA-compliant euro stablecoins increased by 128%, from US$295.6 million to US$673.9 million; the total transaction volume also increased by 43.1% to US$67.3 million. However, at the time, the total market value of these eight euro tokens was still less than 1% of the global stablecoin market, while USDT and USDC denominated in US dollars accounted for a larger share.

Potential impact: Deep impact beyond the payment system

Danish National Bank emphasized that the possible impact of increased use of stablecoins is not limited to the payment field. Its analysis points out that stablecoins may have a potential impact on financial markets, the banking system, and the way monetary policy is transmitted in the economy.

In terms of banking, European financial institutions are actively developing stablecoin products and infrastructure as MiCA establishes rules for crypto assets across the EU area. For example, the banking union behind Qivalis expanded to 37 institutions in May, adding 25 banks from 15 European countries, including ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. The alliance is preparing to issue a regulated euro stablecoin, scheduled to be launched in the second half of 2026. The project, which also includes banks such as ING, UniCredit, CaixaBank and BBVA, aims to support regulated on-chain payments and settlements and establish distribution channels in multiple European banking markets through its member network.

Payment infrastructure providers are also building similar services. OpenPayd was authorized by MiCA in June to become a crypto asset service provider, allowing it to provide fiat to stablecoin conversion, custody, wallet infrastructure and stablecoin transfer services within the European Economic Area.

In addition, corporate treasury teams are becoming a new source of demand for European stablecoins. Companies are looking at these tokens for settlement, international payments and transfer of funds outside normal bank hours. Data cited by Paybis shows that between October 2025 and March 2026, USDC transaction volume within the EU increased by approximately 109%, and its share of platform stablecoin activity also increased from approximately 13% to 32%.

Core Position: The central bank's currency should retain its dominant position in settlement

The Danish National Bank holds different views on the role of stablecoins as a settlement asset among financial institutions. Although the bank said it maintains technical neutrality in its approach to new digital currencies, it emphasized that central bank currency should continue to serve as a common foundation of trust and stability in the monetary system, as well as a major settlement asset between banks.

This position is similar to the view of the European Central Bank (ECB). As ECB Executive Committee member Piero Cipollone said in March, tokenized financial markets need to use central bank currency as the settlement anchor, even when it comes to stablecoins and tokenized commercial bank deposits. The euro zone is developing Pontes infrastructure, which aims to connect a distributed ledger technology platform with the TARGET service, allowing tokenized transactions to be settled using central bank currency.

Danish National Bank said it is working with the European Central Bank to ensure that banks retain access to the central bank's currency in a tokenized financial system. According to its assessment, new technologies can change the way financial assets and payments operate, but should not replace the central bank's currency as the interbank settlement layer.

The central bank concluded that stablecoins remain part of new digital currencies and payment solutions driven by technology and international companies. Its analysis pointed out that if the use of stablecoins in Denmark increases, factors such as the resilience of the payment system, trust in the currency, and the normal operation of the monetary system must be considered.