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HomeNewsDenmark Plans to Issue Blockchain-Based E-krone as its Reserve Currency

Denmark Plans to Issue Blockchain-Based E-krone as its Reserve Currency

Seeing that only 20 per cent of Denmark’s transactions are executed using cash, it’s no strange concept to question the point of printing paper money at all when it represents less than one-third of the money supply and is not even really a safety net should the electronic payments system stop functioning.

In a recent report at Bloomberg by Peter Levering, he interviewed the governor of Denmark’s Central Bank Lars Rohde:

“In Denmark and the rest of Europe there’s a relatively high level of trust in the central bank. In Venezuela less so,” Rohde said, adding that many of the cost benefits to be had apply to small transactions. “The big advantage will concern small and micro payments. It’ll be cheaper, faster and easier for you and me to do electronic payments.”

Rohde says the bank is exploring whether the electronic currency it produces “should be anonymous or not.” The E-krone would have a serial number, which would make currency units traceable at all times. A blockchain – a kind of ledger that chronologically records all e-currency transactions – would allow such tracking. It’s a concept that was developed with Bitcoin, which was created in part in an effort to bypass central banks.

Having your central bank use a blockchain requires a certain level of trust between a country’s citizens and their monetary authority, meaning it’s a model better suited to transparent, developed societies, according to Lasse Birk Olesen, co-founder of fintech firm Coinify, which is developing a blockchain infrastructure for Nordic payments firm Nets A/S.

For full article click here. 


Richard Kastelein
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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