Denmark Central Bank Flags Risks as Stablecoin Market Expands

Danmarks Nationalbank has warned that the excessive use of stablecoins could ultimately have an impact on payments, financial systems, and monetary policy operations in Denmark, even though their current usage is quite limited there. According to the bank, in its analysis published on September 9, stablecoins have grown internationally in the recent past, with increased activity especially towards the end of 2025, while adoption in Denmark is still very low. The central bank of Denmark says there is no stablecoin denominated in the Danish krone at present.

Dollar-Backed Stablecoins Could Create Financial Spillover Risks

This assessment comes as ease of access to stablecoin services within Europe through banks, fintechs, and payment infrastructure. Increased accessibility through financial companies and potential new payment apps can in the future result in increased domestic usage. One such case that has become a reality in Denmark is the launch of EURR. Revolut commenced the release of EURR to some chosen customers in Denmark, Poland, and Portugal on August 26, with plans to roll out the same in other European Economic Area nations at a later stage in 2026. EURR is an EU-pegged coin issued by Bridge Building, which is owned by Stripe.

Nevertheless, the launch enables Danish consumers to obtain a euro-stablecoin in a highly regulated environment via a major financial platform despite Denmark having no stablecoin that is pegged to its national currency. Danmarks Nationalbank has pointed out that, at the moment, stablecoins do not have any relevance to Denmark's financial system due to minimal use of stablecoins within the country.

The possibility of dollar-denominated stablecoins as a source of financial shocks was pointed out. The turmoil related to these coins could affect Denmark via spillovers from the US financial system and international financial markets, according to the central bank. The problem is associated with the size and monetary composition of the international market. Tokens pegged to dollars still prevail in the stablecoin capitalisation, whereas euro-based coins comprise just a minor share of the industry.

Euro stablecoins have nonetheless expanded under MiCA. According to Decta, the total market capitalisation of the eight euro stablecoins that complied with MiCA increased to $673.9 million (roughly Rs. 6,435 crore) as at June 28, 2026, compared to $295.6 million (roughly Rs. 2,823 crore) as at June 30. The total trading volume increased by 43.1 percent to $67.3 million (roughly Rs. 642 crore) from $47 million (roughly Rs. 449 crore). The number of euro stablecoins that were MiCA-compliant was 8, compared with 5 during the reporting period.