Denmark reveals new banknote designs amid declining cash usage

In Denmark, cash transactions account for only about 10% of all purchases. Despite this decline, the National Bank has revealed the designs of new banknotes set to be introduced in four years. The rationale behind producing new notes is rooted in the persistent use of cash, as noted by Jakob Mølgaard Heisel, head of cash services and analysis at the National Bank. He emphasizes that to ensure cash remains a secure and effective payment option in the future, a new series is necessary.

Usage trends show that younger individuals, particularly those under 30, rarely use cash, turning to mobile payments or cards for about 94% of their transactions. Furthermore, cash is increasingly uncommon for personal exchanges such as giving pocket money or gifts, with only 20% of such transactions involving cash last year, largely due to mobile payment platforms like MobilePay.

From May 31, 2025, Denmark will withdraw the 1,000-krone note from circulation, alongside all bills issued before the current series from 2009. Despite declining cash use, many Danes prefer having cash on hand for emergencies or out of concern for privacy and societal issues, indicating that cash still holds significance, even with its reduced role compared to a few years ago.

The anonymous nature of cash can also facilitate criminal activity. A report estimates that of the 73 billion kroner in circulation in 2023, up to 28 billion may be in criminal hands. However, the National Bank is not planning to phase out cash entirely, but instead is eliminating less frequently used notes like the 1,000 kroner bill, while continuing to support cash as an integral payment method in Denmark.