Danish Central Bank Warns of Indirect Financial Risks from Global Expansion of USD Stablecoins

Odaily reports that Danmarks Nationalbank, the central bank of Denmark, has stated that stablecoin usage in Denmark is currently very low and does not yet pose an immediate threat to domestic financial stability. However, the rapid global growth of USD-pegged stablecoins could expose Denmark to indirect financial market volatility and liquidity risks.

Currently, there are no stablecoins denominated in Danish krone in circulation in Denmark, and both consumer and business usage of stablecoins remains limited. As commercial banks, financial institutions, and payment applications integrate stablecoin infrastructure, the scale of related usage may change.

USDT and USDC dominate the global stablecoin market, and turbulence in overseas stablecoin markets could transmit to Denmark through global liquidity channels and the U.S. financial system. Danmarks Nationalbank is working with the European Central Bank (ECB) to ensure that central bank money continues to serve as the primary settlement asset for interbank transactions. (Bitcoin.com News)