Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Stablecoins – global developments and implications for Denmark
Stablecoins are crypto-assets that seek to maintain a stable value relative to a currency. Stablecoin use has grown in recent years and has prompted considerable discussion globally. Stablecoin use in Denmark remains limited. However, close monitoring is important, as wider use may affect payments, the financial system and monetary policy transmission, particularly if foreign stablecoins gain traction. This analysis therefore describes developments in stablecoin use and the opportunities and risks associated with wider use. Finally, the analysis assesses stablecoins’ potential role in the future monetary system. (Full English version will be available soon).
Key messages
Why is this important?
Stablecoins are part of the shift towards new types of digital money and payment solutions, driven by technology and international actors. Although their use in Denmark is currently limited, stablecoins may eventually affect payments, financial markets, the role of banks and monetary policy transmission. Stablecoins also raise questions about how to support innovation without compromising trust, resilient payment solutions and a well-functioning monetary system.
Main chart
Developments in the global market capitalisation of stablecoins