Denmark to phase out 1,000-crown notes from circulation

DENMARK’S largest denomination of banknote is to be gradually phased out of circulation during the next 18 months.

In a statement this Thursday, November 30, Nationalbank announced that the 1,000 crown notes (approx €134) will cease to be legal tender after May 31, 2025. This allows Danes plenty of time to hand in their old notes.

However, the bank detailed plans to develop a new banknote series which should be launched in 2028-29. In common understanding with the Minister for Business, Denmarks Nationalbank also decided that the new banknote series will not contain a 1,000-krone note.

Christian Kettel Thomsen, the bank’s director in Copenhagen said: ‘To ensure that cash is also a safe and effective means of payment in the future, the design and security elements of the banknotes must be at the forefront of technological development’.

‘This is what we want to ensure with a new banknote series, and it is fully in line with the fact that historically, new series have been developed as technology has evolved’.

Danish banknotes previously never became invalid

Prior to the issuance of the new banknote series, all older banknotes issued in the country before 2009 will be phased out. Previously, there was no practice in Denmark for older banknotes to become invalid as new ones were introduced.

‘The old banknotes are difficult to handle for the retail trade and for the banks, because the banknotes do not live up to today’s standards. Therefore, we have decided that it is most appropriate to take the old banknotes out of circulation, Thomsen explained.

He detailed: ‘When the new banknote series is sent to the streets in 2028-29, the current series with bridges and ancient finds will also be phased out after a period, so that we only have one valid banknote series’.

Payment habits have changed in Denmark

According to the bank’s director: ‘With Danes’ changed payment habits, the 1,000 krone note is no longer needed, and in practice, it can even be difficult to use for payments. Of course, we also listen to the concerns and wishes of the police, the financial sector, and the retail trade in relation to the 1000 krone note’.

In today’s society, Danes reportedly only make around 10 per cent of physical payments in stores with cash, with 90 per cent of these payments normally amounting to less than 500 Danish krone.

Money laundering regulations in Denmark also prohibit larger cash payments. Due to very high inflation at the time in the country, the 1,000 krone notes were introduced in 1975 but have since been used to a greater extent than other notes in connection with financial crime said the bank.

An information campaign for citizens will be launched next year by Nationalbank, in collaboration with relevant interest organisations. The public will also be involved in choosing the various themes and motifs for the new Danish banknotes they added.