The National Bank of Denmark has questioned the intentions of other central banks in developed countries to introduce government stablecoins.
The use of cash is declining and there is an increasing need for digital means of payment, especially in the European Union. This becomes the main motivation for central banks to explore the possibilities of their own digital currencies. However, the Danish regulator emphasizes that the government is not motivated to launch a digital Danish krone, since the country is already considered the leader in the use of digital money.
Now only 10% of physical transactions in Denmark are made with cash, the rest of the calculations are carried out in a digital format. Citizens of a country who hold cash do so out of anonymity, not out of distrust of digital money. At the same time, the Central Bank stated that the regulator is open to new forms of digital assets and is ready to allocate resources for their study.
The arguments in favor of launching a digital Danish krone, according to the regulator, are: increasing financial inclusion, increasing the stability of the financial system and reducing dependence on foreign payment infrastructures. The regulator plans to organize a conference on this issue in the fourth quarter of 2022.
Denmark first began exploring the potential of government cryptocurrencies in 2016. However, at the end of 2017, the Danish authorities shelved this initiative, saying that the risks of digital currencies issued by central banks far outweighed the benefits. Later, the government of this European country focused on exploring various use cases for blockchain technology. In 2020, the Danish Ministry of Foreign Affairs stated that blockchain and big data could be used to fight corruption.
While Denmark is not particularly enthusiastic about learning CBDC, other countries are not shying away from innovation. According to the Bank for International Settlements (BIS), about 90% of the world’s central banks are at various stages of pilot projects to study or test government cryptocurrencies.
Source: Bits
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