Denmark Central Bank Warns Foreign Stablecoins Could Affect Monetary

Denmark’s central bank has warned that wider adoption of foreign stablecoins could affect domestic payment systems and the transmission of monetary policy, highlighting potential implications for financial stability if these digital assets gain broader use.

The warning was highlighted by CoinMarketCap and follows a detailed analysis published by Danmarks Nationalbank on Sept. 9, 2026. The central bank said stablecoin adoption in Denmark remains limited, but developments should be monitored closely because foreign stablecoins could eventually influence payments, financial markets, banks and monetary policy transmission.

Danmarks Nationalbank Examines Stablecoin Risks

Danmarks Nationalbank said the risks would become more relevant if stablecoins were increasingly used for payments or as a store of value. Foreign-currency stablecoins could create links between Denmark’s financial system and monetary conditions in other jurisdictions, particularly given the dominance of dollar-denominated stablecoins globally.

The central bank’s analysis notes that stablecoin use for actual payments remains marginal. It estimates annual stablecoin payments at around $390 billion, equivalent to approximately 0.02% of global payment flows. At the same time, the global stablecoin markets capitalization has grown to around $300 billion since 2025.

A broader shift from bank deposits into stablecoins could also affect bank funding and credit provision. Danmarks Nationalbank said this could become relevant if households and businesses move deposits away from banks, although it currently considers the potential impact on Danish credit intermediation to be very limited because banks have alternative funding sources and strong liquidity positions.

Foreign Stablecoins and Denmark’s Monetary Framework

The monetary-policy concern is particularly connected to the possibility of foreign stablecoins becoming widely used in Europe. Danmarks Nationalbank noted that the European Central Bank has warned stablecoins could weaken monetary-policy transmission by affecting bank funding and credit conditions.

For Denmark, the issue is closely linked to its fixed-exchange-rate policy against the euro. The central bank therefore said developments affecting monetary conditions in the euro area can have implications for Denmark as well.

Despite the risks, Danmarks Nationalbank also recognizes potential benefits from stablecoins, particularly for cross-border payments outside Europe where existing payment infrastructure can be more fragmented. The institution has emphasized a technology-neutral approach while maintaining that central bank money should remain the primary settlement asset for major transactions between financial institutions.

The immediate issue for policymakers is therefore not stablecoin use itself, but whether foreign stablecoins eventually achieve enough scale to materially influence Danish payments, bank deposits and monetary-policy transmission.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.