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What if Danmarks Nationalbank issued digital currency?

If Danmarks Nationalbank were to issue central bank digital currency, this would fundamentally change its role in the financial system, and would lead to risks of financial instability. Cen- tral bank digital currency could, for example, have a great impact on the banks’ business model and

Does digital currency exist in Denmark?

In a Danish context, digital currency thus already exists, as bank deposits. 22 Barrdear and Kumhof (2016) emphasise the income from issuing CBDC as a positive effect thereof.

What central bank digital currency can contribute?

It is difficult to see what central bank digital currency would be able to contribute that is not already Incovered by the payment solutions which exist today. Denmark has a secure and effective payments infrastructure and digital currency, in the form of bank deposits, already exists.

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