Danish Central Bank Warns of Financial Risks from Expansion of Dollar-Pegged Stablecoins

The Danish Central Bank, Danmarks Nationalbank, stated that the usage rate of stablecoins in Denmark is low and does not currently pose a threat to domestic financial stability. However, the global growth of dollar-pegged stablecoins could lead Denmark to face indirect financial market volatility and liquidity risks. Currently, there are no stablecoins circulating that are denominated in Danish kroner, and the use of stablecoins by consumers and businesses is limited. As commercial banks, financial institutions, and payment applications integrate stablecoin infrastructure, the scale of related usage may change. USDT and USDC dominate the global stablecoin market, and turmoil in the overseas stablecoin market could transmit to Denmark through global liquidity channels and the U.S. financial system. Danmarks Nationalbank is collaborating with the European Central Bank to ensure that central bank money continues to serve as the primary settlement asset for interbank transactions.

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