Denmark Withdraws 1,000-Crown Note

Denmark, where people use cash less frequently, plans to remove the 1,000-crown notes (equivalent to 134 euros) from circulation. This note is currently the highest denomination in the country. Christian Kettel Thomsen, the director of Nationalbanken, stated that it has become less useful due to changes in the payment habits of Danes. The decision was announced in a press release on Thursday, November 30. The 1,000-crown note, introduced in 1975 during a period of high inflation, will no longer be in use by May 2025. After this date, Denmark will only have four notes in circulation: 50, 100, 200, and 500 crowns.

In Denmark, only 10% of in-store payments are made in cash, which is less than half compared to 2017. Furthermore, 90% of these cash transactions are for amounts less than 500 crowns, according to the financial institution. This trend differs from other countries in the euro zone, where half of commercial payments are still made in cash.

Apart from the practical considerations, the Danish central bank aims to combat economic crime. The decision to phase out the 1,000-crown note takes into account the concerns and requests from the police, the financial sector, and the retail sector. The bank emphasized that this particular banknote is more commonly associated with various forms of financial crime.

Delhi Magazine Team

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