Danish Central Bank Warns on Stablecoin Risks Amid Growing Adoption

Danish central bank Danmarks Nationalbank has issued a warning about the potential risks associated with the growth of stablecoins in the country. While adoption is currently low, the central bank notes that increased use could affect not only payments but also financial stability and monetary policy transmission.

The warning comes as stablecoin services become more widely available across Europe, including through banks, fintech companies, and regulated payment infrastructure. In Denmark specifically, Revolut has begun rolling out its EURR euro-pegged token to selected customers in the country.

Danmarks Nationalbank emphasizes that central bank money should remain the primary settlement asset between banks in a tokenized financial system. This position is similar to one taken by the European Central Bank, which notes that tokenized financial markets require a settlement anchor in central bank money.