Denmark Set to Remove 1,000 Crown Banknote From Circulation

By Jace Dela Cruz

Dec 01, 2023 04:05 AM EST

Denmark, a nation where cash transactions have become increasingly rare, is poised to withdraw its largest denomination, the 1,000 crown banknote, from circulation by May 2025.

According to Euronews, the 1,000 crown is equivalent to about €134 ($145). It is worth noting that Denmark's infrequency in cash transactions stems from its well-established digital payment infrastructure and widespread use of electronic financial services. 

The country has embraced technological advancements, making digital transactions, including mobile payments and online banking, more convenient and widely adopted.

(Photo : MADS CLAUS RASMUSSEN/Ritzau Scanpix/AFP via Getty Images)
A photo taken on November 28, 2023 shows the logo of Denmark's central bank Danmarks Nationalbank on an office building in Copenhagen, on November 28, 2023, following a press conference on the stability of the Danish financial sector.

Why Denmark Is Withdrawing the 1,000 Crown Banknote

Danish central bank director Christian Kettel Thomsen explained on Thursday that the withdrawal is prompted by shifts in payment behaviors among Danes, making the 1,000 crown banknotes obsolete. 

According to Euronews, cash usage in the country's stores has dwindled to just 10%, a significant drop from the 20% recorded in 2017. Notably, a striking 90% of purchases in Denmark amounted to less than 500 crowns, which is about €67 ($72). 

It contrasts the broader eurozone, where more than 50% of commercial transactions are still conducted in cash. Retiring the 1,000 crown banknote aligns with Denmark's ongoing efforts to combat economic crimes. 

The central bank noted that the move stemmed from "the concerns and wishes of the police, the financial sector, and the retail sector." The bank underscored that the 1,000 crown bill "is used to a greater extent than other banknotes in the framework of various forms of financial crime."

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The 1,000 Crown Banknote of Denmark

The 1,000 crown banknote, introduced in 1975 during a period of high inflation, has a history spanning several decades. However, evolving payment trends and the diminishing role of cash in everyday transactions have rendered its continued circulation unnecessary.

Following the withdrawal, Denmark will have a streamlined set of four remaining banknotes in the denominations of 50, 100, 200, and 500 crowns. 

The move aligns with the broader global trend toward digital and card-based transactions, reflecting the modernization of payment systems and the reduced reliance on high-denomination banknotes. 

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