Fewer people use cash, but the National Bank still holds onto it for a while longer

Fewer people use cash, but National Bank holds onto it for a while longer

Nationalbanken is producing new banknotes that will first be released on the market in 2028.

Young people under 30 years old rarely use cash. (Photo: © Kristian Djurhuus, Ritzau Scanpix)

By Laura Kirkebæk-Johansson ([email protected]) 25 minutes ago

Approximately one in ten transactions in Denmark still take place in the old-fashioned way with cash.

Nevertheless, Nationalbanken has lifted the veil on the reasons for the new banknotes, which will only be available in four years. But why produce new banknotes when so few use them?

- It's about the fact that cash is still being used and has several unique properties, says Jakob Mølgaard Heisel, who is head of cash services and analysis at Nationalbanken.

- And if we want to ensure that cash remains a safe and effective means of payment in the future, we must upgrade them to a new series.

Last year, Nationalbanken decided to discontinue the 1,000-kroner note, so it will no longer be valid after May 31, 2025.

At the same time, all banknotes older than the current series from 2009 with motifs of bridges and ancient artifacts will become invalid.

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Young people use cash least

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Especially young people under 30 years old use cash the least and only find coins and banknotes in their pockets for six percent of all payments.

At the same time, cash is used less and less when giving tips, gifts, or at flea markets.

New payment methods on mobile phones such as MobilePay have meant that only 20 percent of payments between private individuals last year were made with cash.

From May 31 next year, the 1,000-kroner note will no longer be valid. (Photo: © Mads Nissen, Scanpix Denmark)

How long will it make sense to hold onto cash?

- There's nothing that suggests that cash is on its way out of Nationalbanken, says Jakob Mølgaard Heisel.

- With the initiatives we have taken in recent years, we are also working to secure cash in Denmark, and we do so under the condition that they are used.

Last year, Nationalbanken decided to discontinue the 1,000-kroner note, so it will no longer be valid after May 31, 2025.

At the same time, all banknotes older than the current series from 2009 with motifs of bridges and ancient artifacts will become invalid.

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Some Danes want cash on hand

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For some Danes, it would be problematic if society became cashless.

When Nationalbanken asks them why, most respond that they prefer to have cash on hand in case other payment methods do not work.

There is also a portion that wants to pay anonymously or is concerned about vulnerable groups in society.

And there are some who are concerned that future generations will have difficulty dealing with money if everything is digital.

- There are many reasons why cash still has significance for Danes. Even though cash is used less as a means of payment than just a few years ago, says Jakob Mølgaard Heisel.

Through the years, Danish banknotes have had many different designs. In the video below, you can see the three most recent series that have been paid with in Danish shops:

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Cash in criminal hands

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The anonymous aspect of cash can be exploited by criminals.

A report from the Money Laundering Secretariat (https://hvidvask.dk/-/media/media/hvidvask/hvidvask-da/dokumenter/publikationer/themes/money-laundering-reports/money-laundering-with-cash-2024.pdf) estimates that in 2023, banknotes and coins in circulation were worth 73 billion kroner, of which up to 28 billion were in criminal hands.

Read also: The farewell to the 1,000-kroner note should combat money laundering: 'They face a challenge' (https://www.dr.dk/news/money/the-farewell-to-the-1000-kroner-note-should-combat-money-laundering-they-face-a-challenge)

Would it not be safer in terms of crime and money laundering if we completely phased out cash?

- Nationalbanken is not planning to phase out cash – quite the opposite. We have chosen an approach where, among other things, the 1,000-kroner note is phased out, as it is not used for a significant number of payments, and it has been the seddle most subject to counterfeiting.

- That it can be a side benefit that the seddle, which is used more than other seddles to support economic crime, disappears, is of course positive, says Jakob Mølgaard Heisel.

You can read more about the reasons for the new banknotes here:

H.C. Andersen and Tycho Brahe are among the people on our new banknotes in 2028 (https://www.dr.dk/news/indland/hc-andersen-og-tycho-brahe-er-blandt-personerne-paa-vores-nye-pengesedler-i-2028)

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Warning: This article was translated by a Large Language Model, in case of doubt, you can always visit the original source.