Banknote news from Denmark: Out phasing of 1000 Kroner notes and older banknotes

Recent news from the Nationalbank of Denmark:

1) All the 1000 Kroner note will cease to be legal tender from the 31st of May, 2025. Untill then it can still be used, it can be handed over to the bank and will still be worth face value, up untill that date. 

--- It is not known to me how this will effect the Faroese 1000 Kroner notes.

--- This has of course made a stirr/panic in the Danish collector community, since they don't know what to do with their 1000 notes. They could get cheaper after a while, if there is a lot around, they could get more expensive, due to people handing most of them in.

2) All notes older than the current series of 2009 (bridges and antiquities) will be phased out too, as of the 31st of May, 2025.

— This has also created a bit of a stirr, but less, since they weren't really used nor worth nearly as much as the 1000 Kroner note.

3) A new series has been set to be released by 2028-2029, but without the 1000 Kroner note.

4) A new law will come into place, where you can't pay with more than 15.000 in cash, where before it was 20.000

All this is to future proof the cash value of Danish Kroner and illegal work/tax froud and white washing. Many collectors think it's because so the goverment can keep track of us and our purchases, with electronic payment. Some argue the Nationalbank shouldn't do away with the 1000, but instead make a 1500, 2000 and/or 5000, due to inflation, but with the lack of cash use, I can understand why they want to keep fewer cash denomination out there.

Sources:

English:

https://www.nationalbanken.dk/en/news-and-knowledge/publications-and-speeches/news/2023/the-future-of-danish-cash-strategic-initiatives

Danish:

https://www.dr.dk/nyheder/penge/nationalbanken-afskaffer-tusindkronesedlen

It is laws like this, that is killing off physical currency. Eliminating biggish notes and restricting amounts. When is this madness going to stop, what about when computers break down and the rest.

I mean 1,000 Kroner is not even that much. Sweden had a 10,000 Kroner note until the 70s. Denmark had 500 Kroner notes as far back as 1908 at least. Surely the buying power of 500 Kroner back then was much more 1,000 today - yet no one was complaining about money laundering or drugs back then.

Its part of a plot to make all physical money essentially worthless. I mean here in NZ, they want to phase out $100 notes - rather than doing this, they should be introducing $500 and $1,000 notes. $100 today had the buying power of $2.79 in 1967 and about 23/- in 1933 or £1 and 3 shillings  ($2.30) and they had notes up to £50 and $100 back then!

Jamtrup

Many collectors think it's because so the goverment can keep track of us and our purchases, with electronic payment.

I agree with this notion of (danish) collectors.

While Nationalbank says that “cash has a future in Denmark” the withdraw of the 1000 Kroner note says ''No, not really.'' Undoubtedly, in a couple of years the 500 Kroner will be targeted by the anti cash lobby.

Considering that approx. 25 million 1000 Kroner of the 2009 series and aprox. 1,45 million 1000 Kroner notes of the older series are still around abolishing them is going to be a pretty dramatic move. 

If I am not gravely mistaken the 1000 Kroner note was mostly used as ''store of value'' in Denmark. The government / Nationalbank takes this unnecessarily away. (Yes, in my eyes, unnecessarily). And, of course, criminal activity is given as one of the (main) reasons. That's, well, you can image what I think.

The Faroese 1000 Kroner is most likely a goner, too. The Danes will surely put heavy pressure on the Faroese authorities to get rid of the denomination. By the way, I wonder how many of these notes are actually in the hand of the public (=in circulation). 

Taking a European look however, the ECB plans for its third series of Euro banknotes a continuation of the €100 and €200 denomination (although, the €200 might come under pressure now). So, there's an alternative just across the border.

By the way, updated versions of the 50, 100 and 200 Kroner notes of the 2009 series will enter circulation in 2024 and 2025. The 100 Kroner note is likely the first.

This is interesting.

I have 500 krone x 2 from the 2008 prints and 1000kr x 2 from the 2006 series, and then for the Bridge series, I have 1000 kr x 4, all in UNC condition. These will be all death money after 31.05.2025 😒 

I don't find the double-speak (we need cash but we're phasing it out) from the National bank of Denmark surprising. People all over the globe are using less cash & more digital forms to purchase things.  The Bank of Canada also did a study about switching to a digital currency & the result of their finding was that it would reduce central bank staff (limit its function), provide insecurity amongst the pop & further marginalize some sectors of the CDN populace. This study was conducted by economists about 8 years ago when the BTCA first came to my attention. Nevertheless, Canadian society is nose diving into the "realm of cashlessness." 

The BTCA has been encouraging governments to restrict cash use by supporting the plastic, digital & private cash industries with $ support which in turn provide “incentives” for retailers not to accept cash/individuals to get "loyalty points," etc. Retailers have been reducing staff (saving $) with the continual installation of automated self-check outs. The transition to cashless has been more successful in some countries over others. 

I find it more surprising that people remain actively ignorant about the Better than Cash Alliance's agenda (to make society cashless) & that they continue to believe their governments' myths that only criminals use high denominations (or that by eliminating high denominations they're fighting crime).  Much more criminal activity occurs digitally & through other schemes/scams & high denominations have little to do with it. 

Even the BTCA have switched their propaganda tune from “fighting Covid” to “empowering women.” (When they first formed, their mantra was use digital cash to “ward off crime.”)

The bottom line is that there is absolutely no reason why cash & digital (private) currency cannot co-exist (as it has for the last couple centuries).  High denominations should still be issued (like in Switzerland).  The more we buy into (or accept) the absurd notion that cash is linked to criminal activity the dumber (less free/less private) we get.  It is important to remember that nobody champions cash use (nobody really profits from cash use other than the person using it & the central banks who issue physical cash). 

We either “use it or lose it.” 

Serial_Number_8

The more we buy into (or accept) the absurd notion that cash is linked to criminal activity the dumber (less free/less private) we get. 

An argument that co-exists with the above is: “If you have nothing to hide, you have nothing to fear”, as an argument for more digital transactions. Why do I have this creeping feeling that we're moving away from “people being innocent until proven otherwise”?

@Serial_Number_8: Very well said 👍

Considering I have over 30,000kr in old coins stocked up at home, this is pretty concerning. I hope the bank does not change its policy on the coins also

A little update:

The Nationalbank of Denmark just announced, rather festive on Facebook that the Danes have handed in 1000 banknotes in masses

So far at least 1,84 million 1000 kroner notes have been handed in, equivelant to the value in the picture below.

Despite protest from the public, it doesn't seems like the bank wants to change their current path of demonitaisation.

One person texted me and asked for advice for their collection, I con only say:

Look at the Swedish notes, see how much value they have lost since demonitaitation.

If you want to keep Danish notes, my suggestion (based on what other collectors have discussed on Facebook) is to only keep the UNC and near UNC ones, since they have a higher chance of keeping some of their value.

If they are rare, or for instance replacement notes, they may also keep more value.

Keep in mind, the above mentioned suggestions and advices are based on what I have read and my own toughts. There are no garentees for this to be the best course of action! I will probably ask my local coin shop, what they think, soon.

About coins:

And about what @KennyG  said, about our coins: I don't expect the coins to be demonitaised to the same extend as the notes just were. I expect them to be demonitised slowly as their face value becomes worthless. Right now, all coins values 50 Øre and above are worth their face value, and you can go to the bank to exchange them to current coins.

That being said, we get a new monarch in a couple of days, and within a year or so we should get new coins in circulation. I suspect they may be based on the current standards and over time get a new size and shapes. That's at least the tendency for the last 100 years or so, that after 10-20 years the coins get a completly new design, so their appearance looks closer to their value. If that makes sense?

Maybe the bank will use the chance to get some coins back as well?

Jamtrup

A little update:

The Nationalbank of Denmark just announced, rather festive on Facebook that the Danes have handed in 1000 banknotes in masses

So far at least 1,84 million 1000 kroner notes have been handed in, equivelant to the value in the picture below.

 

Despite protest from the public, it doesn't seems like the bank wants to change their current path of demonitaisation.

 

One person texted me and asked for advice for their collection, I con only say:

Look at the Swedish notes, see how much value they have lost since demonitaitation.

If you want to keep Danish notes, my suggestion (based on what other collectors have discussed on Facebook) is to only keep the UNC and near UNC ones, since they have a higher chance of keeping some of their value.

If they are rare, or for instance replacement notes, they may also keep more value.

Keep in mind, the above mentioned suggestions and advices are based on what I have read and my own toughts. There are no garentees for this to be the best course of action! I will probably ask my local coin shop, what they think, soon.

 

 

About coins:

And about what @KennyG  said, about our coins: I don't expect the coins to be demonitaised to the same extend as the notes just were. I expect them to be demonitised slowly as their face value becomes worthless. Right now, all coins values 50 Øre and above are worth their face value, and you can go to the bank to exchange them to current coins.

That being said, we get a new monarch in a couple of days, and within a year or so we should get new coins in circulation. I suspect they may be based on the current standards and over time get a new size and shapes. That's at least the tendency for the last 100 years or so, that after 10-20 years the coins get a completly new design, so their appearance looks closer to their value. If that makes sense?

Maybe the bank will use the chance to get some coins back as well?

I agree with you on this. I have 6 pieces of the 1000 values all in gem UNC condition. I will keep them, as I know that one day it will be in demand. I enjoy collecting high value banknotes that have been demonetised (not hyper inflation type), like the India 2000 2016 and 2017 rupees, and also those Malaysia 500 and 1000 ringgit. I have just bought another Indian 2000 rupees dated 2017 in UNC condition.  I agree that it is only worth keeping if the notes are in UNC condition, in my opinion. 

 I agree that it is only worth keeping if the notes are in UNC condition, in my opinion. 

- I think most collectors would agree with the UNC criteria.  But there should be other factors to take into consideration. 

The first thing a collector should remember is the last series is typically hoarded by the entire population (who assume that these notes will become collector items) & not just collectors.  Their BV won't go up much in 10-20 years.  There will be plenty of these in good shape stashed away for a LONG time. The second thing to consider is whether that kind of money (5 or 6 high denoms) could be better spent somewhere else.  

When our Birds $1000 was demonetized all sorts of people had them stashed in their SDB & a few cashed them in. Several coin collectors would go to their banks & ask them if they could get these (from their returns pouch for FV). They're 40  years old (& kind of pretty) but cost a LOT to sell (sellers fees, etc) & very few actually sell for much of a premium. You'll never see them sold in stores & very few sell online or graded.

If you like high denominations,  it may be a good idea to look back a few series & discover which one is tough (or desired) by other collectors & use some of the ones you have saved to purchase one of the older series OR simply buy another “sweetheart” series from your nation (but lower denom).  Every nation has a favourite series. For example, Canada's first 3 series (1935/37 & Devils Face 1954) seem very popular with American collectors. I'm pretty certain that if I had a five or six Birds $1000 notes around (& if they were in AU) than it would probably be worth my while just to cash them in to buy (or put a downpayment) towards a 1937 or DF $1000. It might be wiser to get a lower denom (like a $50 or $100) if it meant getting the note in UNC.  Just IMO.

Jamtrup

A little update:

The Nationalbank of Denmark just announced, rather festive on Facebook that the Danes have handed in 1000 banknotes in masses

So far at least 1,84 million 1000 kroner notes have been handed in, equivelant to the value in the picture below.

That's 7,3% of the 1000 kroner notes which were in circulation on 31-Dec-2022.

Decide for yourselves if this is ‘’in masses.''

Despite protest from the public, it doesn't seems like the bank wants to change their current path of demonitaisation.

Buh 👿

For those interested; the new enhanced Danish banknotes will begin realesing today. But only the 100 and 200. The 50 will come out in 2025.

It's not the new banknotes, only the enhanced ones, similar to those we have now. See the difference between the two current 500 kroner notes.

Looking forward to someone adding them to the catalog 😁

Source:

https://www.nationalbanken.dk/en/the-future-of-cash/security-upgrade

Jamtrup

Looking forward to someone adding them to the catalog 😁 

Don't count on me. 

A couple of weeks ago, I created two pages for two new banknotes (different countries) very shortly after the banknotes were introduced. Nothing happened for two (or more, I don't remember anymore) weeks. Then, I get the message from the referees that the pages had already been created and my pages were deleted. Well, I do not put in the work and especially the time to create new pages for banknotes only to find out after some time that it was for nothing. 

Yes, I will continue to send update / modification requests to pages if I discover something new. But creating from scratch: Nope. 

A few days ago, Danmarks Nationalbank released its annual report for 2023.

I have to admit I do not quite understand what the bank is saying here

''When Danmarks Nationalbank started recalling the old banknote series, an extraordinary ‘de-issue’ of the old 5 and 10-krone banknotes issued in the 1944 and 1952 series and the older Faroese 1-krone banknotes started. This is because these banknotes were recalled in 1954 and can no longer be redeemed at Danmarks Nationalbank and are therefore no longer part of cash in circulation.''

It would be great if someone were able to explain that to me. 

Thanks in advance.

Slight update on this:

The National Bank of Denmark has made a cooporation with Forex to exchange the old banknotes, up untill a year after demonitaition:

https://www.nationalbanken.dk/en/the-future-of-cash/banknote-exchange-points

And I  can't explain what they mean by de-issue of the older low value Danish and Faroese banknotes… I think it's because it's long ago they got replaced by coins? The bank will not take them, for what I understand:

https://www.nationalbanken.dk/en/the-future-of-cash/no-longer-legal-tender

Jamtrup

Slight update on this:

 

And I  can't explain what they mean by de-issue of the older low value Danish and Faroese banknotes… I think it's because it's long ago they got replaced by coins? The bank will not take them, for what I understand:

https://www.nationalbanken.dk/en/the-future-of-cash/no-longer-legal-tender

 

I read somewhere* on nationalbanken's website that even though the old low value Danish and Faroese banknotes have not been legal tender since 1954, Nationalbanken did accept them for exchange until recently. However, that practice has now stopped – (IIRC) when they announced the phasing out of the other banknote series (November 2023). They do not accept these old low value banknotes for exchange.

*: Sorry, have no time to search Nationalbanken's website for this information. But I have read it there. 😉