Central bank digital currency in Denmark?

Analysis - December 2017 - No. 28

Authors Gürtler, Kirsten; Nielsen, Søren Truels; Rasmussen, Kristine; Spange, Morten
Subject Payment systems; Financial stability; The role of Danmarks Nationalbank; Monetary policy; Central bank digital currency
Type Analysis
Year 2017
Published 15 December 2017
The analysis concludes that central bank digital currency would not be an improvement of the existing payment solutions in Denmark. Central bank digital currency would fundamentally change Danmarks Nationalbank’s role in the financial system and make it a direct competitor to the commercial banks. The introduction would also lead to risks of financial instability. The potential benefits of introducing central bank digital currency for households and businesses in Denmark would not match the considerable challenges which this introduction would present. Danmarks Nationalbank therefore has no plans to issue central bank digital currency.