Denmark central bank warns stablecoin growth could pose financial risks

Danmarks Nationalbank has warned that a sharp increase in stablecoin use could eventually affect Denmark’s payments, financial system and monetary policy transmission, despite their limited use in the country today. Summary Stablecoin use remains very limited in Denmark, with no Danish krone denominated stablecoin currently in circulation. Danmarks Nationalbank warned that increased adoption could affect payments, financial stability and monetary policy transmission. Turmoil involving dollar stablecoins could reach Denmark through spillovers from the US financial system and global markets. The central bank said central bank money should remain the primary settlement asset between banks in a tokenized financial system. Danmarks Nationalbank said in a Sept. 9 analysis that stablecoins have expanded globally in recent years, with activity rising sharply toward the end of 2025, while adoption in Denmark remains very low. The central bank said no Danish krone-denominated stablecoin currently exists. The assessment comes as stablecoin services are becoming easier to access across Europe, including through banks, fintech companies and regulated payment infrastructure. The Danish central b...