E-kroner

Main motivation/goals of the CBDC: A CBDC solution would not improve the current financial infrastructure of Denmark and that offering an e-krone would essentially make the DN compete with commercial banks. → The Nationalbanken confirms that there is no need for a retail CBDC in Denmark as commercial banks continue to offer their services. The decline of cash usage does not lead to a substantial risk of financial stability.

Link to announcement: www.nationalbanken.dk

None → Cancelled

Announcement Year: 2017

Retail/Wholesale: Retail

Structure: Account/Token

Description: The Central Bank of Denmark explored the viability for a national digital currency (E-kroner) in 2016 and 2017. The critical question, Central Bank Governor Lars Rohde noted, was whether the CBDC "should be anonymous or not." In its December 2017 report, the Danish Central Bank concluded that "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." Citing Denmark's existing secure and effective payment infrastructure, the report noted that the efficiency gains from a CBDC does not outweigh the risks of financial instability that a CBDC can lead to the risk of systemic bank runs.

Main motivation/goals of the CBDC: A CBDC solution would not improve the current financial infrastructure of Denmark and that offering an e-krone would essentially make the DN compete with commercial banks.

Link to announcement: www.nationalbanken.dk

Country / Region: Denmark

Central Bank(s): Nationalbanken