Denmark is removing old banknotes from circulation due to declining usage
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Denmark has started withdrawing older banknotes from circulation due to the lack of their usage among its citizens. The country noticed that very few people still recognize them as valid, and even those who do are feeling less and less confident about receiving them as payment.
Furthermore, the country’s central bank has also decided to remove the 1000-krone bill, its largest denomination note, which is also seeing significantly reduced usage, in addition to causing money-laundering concerns.
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Four out of five existing banknote series to be removed by mid-2025
Right now, the five most recent banknote series, which came out between 1944 and 2009, are all considered legal tender in the country. However, in about a year and a half, starting from 31 of May, 2025, the country’s central bank intends to completely remove the four oldest series from circulation.
Commenting on the decision, the bank said that using the banknotes from before 1997 for private transactions and in stores is becoming increasingly difficult. Few of the country citizens and shop employees even recognize them as real money due to their extensive age, and the confidence in accepting them as legal tender is rapidly dropping.
The central bank noted that some of the older banknote series can still be used in retail cash systems or ATMs, but some are also not recognized by them, making it more difficult for those who have accepted them to spend them or exchange them.
Denmark is removing the 1000-krone notes
As for the 1000-krone notes, the bank decided to remove them completely, stating that they are not necessary to support safe and efficient payments in the country. They are rarely used, which proves that they are not needed in the first place.
Denmark to phase out 1000-krone note in 2025 https://t.co/K6TVaoDNK7
— The Local Denmark (@TheLocalDenmark) November 30, 2023
The bank said that the vast majority of payments that see the use of cash are made for less than 500 krone, which is something that Danish retailers and the financial sector have noticed a while ago. They even called for the removal of the 1000-note, which would make cash easier to handle.
Simultaneously, the local police also said that the 1000-krone banknotes are used much more in financial crimes than any other banknote. In other words, the local population did not use this specific banknote; the retailers wanted it gone, and it was being used almost exclusively by criminals, so the central bank finally decided to do something about it.
Cash is seeing less usage than ever, but the central bank still wants it around
Like most other countries around the world, Denmark noticed that the use of cash is going down, in general. With the electronic alternatives being more efficient, especially when it comes to contactless payments, more and more people have switched to some form of digital banking.
Right now, only one in 10 shop purchases are made with cash and last year, Denmark recorded zero bank robberies, showing that cash is rapidly losing interest, even that of criminals.
The central bank still insists that cash is necessary and that it needs to remain present, which will continue in the future as well, based on its predictions. This opinion is what fueled the creation of a new series of notes.
