Stablecoins must not replace central bank reserves, analysis finds
Danmarks Nationalbank concluded in an analysis that stablecoins cannot replace central bank reserves for interbank settlement, despite global market capitalization surpassing $300 billion. Domestic adoption remains marginal, with no krone-denominated token currently available.
Dollars dominate as krones stay absent
Global stablecoin market capitalization expanded from $140 billion in 2024 to over $300 billion by late 2025, yet actual payment usage remains marginal at approximately $390 billion annually, or 0.02 percent of global transaction flows.
Dollar-pegged assets account for more than 98 percent of total issuance, led by Tether and Circle.
In contrast, adoption across Europe and Denmark is minimal: only 0.2 percent of euro area firms accepted cryptoassets for online sales in 2026.
Denmark has authorized only one stablecoin issuer, denominated in dollars, with no Danish krone tokens on the market.
Furthermore, roughly 90 percent of transaction activity remains confined to cryptoasset trading rather than commercial payments.
Deep markets absorb contagion risks
Direct stability risks for Denmark remain low, though disruptions in dollar-backed tokens could spill over via US Treasury markets, impacting global interest rates and Danish pension assets.
Currency substitution risks are negligible because the daily Danish krone foreign exchange turnover of 139.6 billion kroner easily absorbs potential conversion outflows.
Meanwhile, Danmarks Nationalbank is collaborating with the ECB on the Pontes and Appia initiatives to integrate central bank money into tokenized settlement infrastructures.
Anchors beat algorithmic promises
The analysis rightly punctures the hype around stablecoins by exposing their negligible role in actual payments.
Private tokens cannot replicate the safety and liquidity that central bank money guarantees for wholesale settlement.
Public authorities must ensure sovereign money remains the core anchor of any tokenized future.