Denmark to phase out 1000-krone note in 2025
The highest-denomination banknote in circulation in Denmark the 1000-krone, will be withdrawn in 2025.
The 1000-krone bill will cease to be legal tender in Denmark from May 21st 2025, the central bank, Nationalbanken, said in a statement on Thursday.
The decision is made in “joint understanding” with the business minister, Morten Bødskov, according to the statement.
“With the changes in Danes’ payment habits, there is no longer any need for a 1000-krone note and in practice it can be difficult to pay for things with it,” National Bank director Christian Kettel Thomsen said in the statement.
“We have also listened to concerns and the preferences of the police, the financial sector and the retail sector in relation to the 1000-krone note,” he said.
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A new series of banknote designs is scheduled to be released in 2028 or 2029, replacing the current design which has been used since 2009.
All notes issued before 2009 will become invalid when the new versions are launched.
This represents a change of practice because Denmark does not generally take old banknote designs out of circulation, and notes from as far back as 1944 are still technically usable at present.
“The old notes are difficult for retailers to deal with and for banks because they don’t live up to modern standards,” Thomsen said.
New rules on the use of cash could be introduced from March next year, the National Bank also said at a briefing on Thursday.
The current limit to cash payments, introduced in 2021, is 20,000 kroner. The government is to table a bill to reduce this to 15,000 kroner.
Cash is currently used in 10 percent of payments in stores in Denmark, with 90 percent. Of these payments being 500 kroner or less.
Police consider the 1000-krone note to be used more often than other denominations “in relation to economic crime of various characters”, the central bank stated.
The high-value note first entered circulation in Denmark in 1975, when inflation was high.
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The 1000-krone bill will cease to be legal tender in Denmark from May 21st 2025, the central bank, Nationalbanken, said in a statement on Thursday.
The decision is made in “joint understanding” with the business minister, Morten Bødskov, according to the statement.
“With the changes in Danes’ payment habits, there is no longer any need for a 1000-krone note and in practice it can be difficult to pay for things with it,” National Bank director Christian Kettel Thomsen said in the statement.
“We have also listened to concerns and the preferences of the police, the financial sector and the retail sector in relation to the 1000-krone note,” he said.
READ ALSO: Danish bus companies ordered to change policy on change
A new series of banknote designs is scheduled to be released in 2028 or 2029, replacing the current design which has been used since 2009.
All notes issued before 2009 will become invalid when the new versions are launched.
This represents a change of practice because Denmark does not generally take old banknote designs out of circulation, and notes from as far back as 1944 are still technically usable at present.
“The old notes are difficult for retailers to deal with and for banks because they don’t live up to modern standards,” Thomsen said.
New rules on the use of cash could be introduced from March next year, the National Bank also said at a briefing on Thursday.
The current limit to cash payments, introduced in 2021, is 20,000 kroner. The government is to table a bill to reduce this to 15,000 kroner.
Cash is currently used in 10 percent of payments in stores in Denmark, with 90 percent. Of these payments being 500 kroner or less.
Police consider the 1000-krone note to be used more often than other denominations “in relation to economic crime of various characters”, the central bank stated.
The high-value note first entered circulation in Denmark in 1975, when inflation was high.
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