Denmark Phasing Out 1000 Krone Banknote [€134] Due to Obsolescence

The National Bank of Denmark has announced that after May 31, 2025, the 1,000 Danish krone banknotes, equivalent to approximately €134, will lose their status as legal tender. This denomination will not only be withdrawn from circulation but also excluded from future banknote series, as reported by Euronews.

The leadership of the Danish central bank emphasized that the 1,000 krone banknotes have become obsolete due to changes in the payment habits of the Danish population. According to Christian Kettel Thomsen, the head of the Danish regulator, these banknotes are currently challenging to use in practical transactions, especially considering Denmark's anti-money laundering legislation, which restricts large cash payments.

Statistics from the National Bank of Denmark indicate that only 10% of transactions in the country's stores are conducted in cash, which is half of the percentage in 2017. Additionally, 90% of purchases amount to less than 500 Danish krone or approximately €67.

The 1,000 krone banknotes were introduced into circulation in Denmark in 1975 due to high inflation. However, according to regulators, these banknotes have been used for financial crimes more frequently than others since then.

The Danish central bank has also revealed its plans for developing a new series of banknotes, expected to be in circulation by 2028-2029. The public will be involved in selecting various themes and motifs for the new Danish banknotes.

Upon the introduction of the new series in 2028-2029, the current series featuring bridges and ancient landmarks will be gradually phased out of circulation over a certain period. The head of the regulator noted that working with old banknotes is challenging for retailers and banks, as they do not meet modern standards. Denmark has not previously practiced the discontinuation of old banknotes with the introduction of new ones.

In other news, international depository Euroclear reported a €3 billion interest income from frozen Russian assets, and future earnings will depend on changes in interest rates and the amount of funds invested amid the evolving sanctions regime. Since the onset of the full-scale war in Ukraine, the EU has frozen over €200 billion in assets of the Russian Central Bank, a significant portion of which is stored in Euroclear. Additionally, the EU has frozen €24.1 billion in assets belonging to Russians and Russian companies subject to sanctions. Recently, the United States also froze $8 billion in Russian assets.