You can put forward a pretty good case for Europe being the most integrated continent on the planet. In the European Union (EU), member states’ citizens can freely live, study, and work in each other’s countries without obtaining a residence permit. The same is true for some non-EU countries, such as Norway and Iceland. Scandinavia’s southernmost country is an EU member, but does Denmark use the Euro?
Within the EU, many countries have adopted a single currency, including France, Germany, and Belgium. Traveling around Europe is much easier; you don’t need to worry about exchanging money if you venture from Germany to Austria, for example.
But while Denmark is in the EU, its relationship in a currency sense is a little complicated.
This article will discuss the relationship between Denmark and the Euro. You’ll discover whether you can use Europe’s main currency in the country, plus much more.
Does Denmark use the Euro?
To answer as shortly as possible, no; Denmark does not use the Euro. The country has had the opportunity to adopt the currency in the past, but citizens voted against doing so; we’ll discuss that in more detail further down.
Which currency does Denmark use?
Denmark uses the Danish Krone, which you’ll see placed on foreign exchanges as DKK. At the time of writing in March 2022, you can get 8.91 DKK for 1 GBP. If you’re traveling from the US, the value of 1 USD is 6.78 DKK.
You can use the DKK throughout the main part of Denmark, including its two largest cities — Copenhagen and Aarhus. If you travel to any of the country’s scenic islands, such as Bornholm, you will also use the DKK pretty much everywhere.
Each Danish Krone is made of 100 øre, which is the equivalent of pence in the UK or cents in the US.
While Denmark is one of the most cashless societies globally, and you can use credit and debit cards almost everywhere, you can still get coins. These start at 50 øre and go up to 20 kroner. You can get 1, 2, 5, and 10 DKK in coins — in addition to the two we already mentioned.
In Denmark, notes begin at 50 DKK. After that, you can get notes up to 1,000 DKK; besides the two already pointed out, you can get 100, 200, and 500 DKK notes.
The Kingdom of Denmark has a couple of territories elsewhere, namely Greenland and the Faroe Islands. In both countries, the Danish Krone is the official currency. The Faroe Islands also use the Faroese Krone, but the value is identical to the DKK.
The National Bank of Denmark, also known as Danmarks Nationalbank, regulates the Danish Krone in the country.
Why does Denmark not use the Euro?
Considering that 19 of the EU’s 27 member states use the Euro, you might find it confusing that Denmark hasn’t followed suit. The country has had the chance to adopt the currency but opted not to.
In 1992, countries in the EU had a referendum on the Maastricht Treaty. Denmark was one of those, and the legislation was met with significant resistance domestically; 50.7 per cent of citizens voted against it.
Following the rejection of the Maastricht Treaty, Denmark received four opt-outs as part of its EU membership. In addition to opting out of certain defense-related requirements and a common EU citizenship in the place of a Danish one, Denmark has an opt-out for joining the Euro Zone.
Since 1992, discussions surrounding Denmark joining the Eurozone have not gone away. In 2000, another referendum was held in the country — this time for adopting the Euro. And again, the majority of Danes said no to doing so.
The 2000 referendum had a voter turnout of well over 80%. 53.2% of individuals said no to replacing the DKK with the Euro, with just a handful of municipalities voting in favor of doing so.
Several parts of Copenhagen had a majority “no” vote; it was primarily the city’s wealthier districts that wanted Denmark to adopt the Euro.
Is Denmark obliged to acquire the Euro in the future?
Since Denmarks’ 2000 Eurozone referendum, the EU has expanded significantly — even though the UK has now left the bloc. The country wasn’t the only nation to opt against adopting the EU’s official currency; you only need to cross the Øresund Bridge to find another example.
In 2003, citizens in Sweden were allowed to vote in a referendum on replacing the Swedish Krona with the bloc’s common currency. But once again, the option was met with resistance. Nearly 56% of voters said no, and almost every county in Sweden had a majority against adopting the Euro.
Despite Sweden choosing not to adopt the Euro in 2003, Scandinavia’s largest country must replace the SEK at some point in the future (though, as of March 2022, it has no plans to do so).
On the other hand, Denmark does not have to join the Eurozone and can keep the DKK as its official currency for as long as it wants.
Denmark is the only EU member state without an obligation to join the Eurozone. Before leaving the bloc, Great Britain had a similar agreement.
Which other EU countries don’t use the Euro?
In addition to Sweden, a selection of other European countries are part of the European Union — but aren’t part of the Euro Area. The Czech Republic uses the Czech Koruna, while Hungary uses the Forint.
Meanwhile, Poland uses the Zloty, and Romania’s official currency is the Leu. Like Sweden, all of these nations are obliged to adopt the Euro once they meet special conditions.
Bulgaria and Croatia are two other countries that still have their own currencies but are part of the EU. Unlike Denmark, neither nation has an opt-out option.
Neither Iceland nor Norway are European Union members, and their currencies are the Icelandic Króna and Norwegian Krone, respectively. Even though they’re part of the European Economic Area (EEA) and Schengen Zone, neither nation has any obligation to adopt the Euro in the future as they aren’t full EU members.
After the Global Financial Crisis, Iceland applied for EU membership but has since gone back on those plans and remains independent. Closer to Denmark, Norwegian citizens have previously rejected EU membership in 1972 and 1994.
Is the Danish Krone tied to the Euro?
Unlike the national currency of Denmark, the Euro’s regulation is a little different. The European Central Bank regulates the currency, though national banks have a say in monetary policy.
Having read this far, you now know that Denmark doesn’t use the Euro. You also have an idea of whether it has to change that in the future, along with how the currency is regulated. But despite all of this, is the Danish Krone tied to the Euro?
In short, yes: the Danish Krone is pegged to the Euro.
Danmarks Nationalbank is responsible for keeping the DKK close to the Euro. The official peg is 7.46 DKK for 1 EUR; Denmark’s currency has to stay within 2.25% of that range. For the most part, the currency has managed to do that without too many problems.
Does Denmark accept Euros?
The Euro is a little complicated because it’s not just the official currency of Eurozone states. If you go on holiday to several countries outside of the Euro Area, you can still use the currency to pay for items. For example, Switzerland is neither part of the EU nor EEA, but many tourist spots will still allow you to pay in Euros.
Some European microstates are also not part of the EU, with San Marino and the Vatican City being two examples. But despite this, the pair of them – along with Monaco and Andorra – use the Euro as their official currency.
Other non-EU members where you can use the Euro include Montenegro and Kosovo. If you visit Greenland, you can also use the currency in some places.
Closer to home, you’re probably curious about whether Denmark uses Euros. And the answer is yes — but only in some places. If you live in Denmark, it’s extremely uncommon that you will use the Euro — and in most cases, you’ll probably go through your entire life without ever paying for something with the currency here.
If you’re a tourist, however, you can get away with using Euros in a selection of areas. Some souvenir stores and larger shops will let you use Euros to fund your purchase, and the same is true for a selection of hotels and taxis.
However, most of these will be in downtown Copenhagen; if you go anywhere else in the country, you’re better off using Danish Kroner.
When traveling to Denmark, you might decide to fly from Copenhagen to the scenic Faroe Islands. If you do, it’s important to remember that the Faroe Islands are not part of the EU. However, some shops will let you pay in Euros — though you’ll receive your change in Danish or Faroese Kroner.
How can I get Danish Kroner for my trip?
Even if you only plan to visit Copenhagen, the truth is that it’s much easier to use Danish Kroner in Denmark than the Euro. Therefore, we recommend that you exchange your local currency for Danish Kroner if you only plan to visit Denmark (if you live here, you’ll need to open a Danish bank account anyway).
As mentioned earlier in this article, you really don’t need to use cash in Denmark; most places throughout the country prefer card payments. However, you still can use money in its physical form if you want to.
Before you travel, the best place to get Danish Kroner is your local post office; while you can do so at an airport, you’ll get a worse exchange rate.
You’ll find several places to exchange your money in Copenhagen when you arrive in Denmark. You can change several currencies, including the U.S. Dollar and British Pound.
If you choose to pay via card in Denmark, you’ll probably have foreign exchange fees in mind. Luckily, you can waive many of these by using a digital bank. Some of the best include Monzo, N26, and Revolut.
Will Denmark adopt the Euro in the future?
Many Danish people have had a firm stance against adopting the Euro in the past, but it’s important to remember that the most recent national vote took place over 20 years ago.
Since then, Denmark has become much more international — though it continues to maintain a strong degree of independence compared to many European countries.
A second referendum on adopting the Euro has been discussed in recent years. Meanwhile, several politicians have expressed their preferences for joining the Euro Area; perhaps the most notable is Helle Thorning-Schmidt, who is the country’s former Prime Minister.
At the moment, though, Denmark doesn’t seem to have any plans to adopt the Euro in the future. The Danish economy is pretty strong, with some of the highest salaries in Europe and a high gross domestic product per capita.
That’s not to say that it will never happen, but you shouldn’t expect to see another referendum soon.
Can I use the Danish Krone elsewhere in the Nordic countries?
The Nordics are arguably the most cooperative corner of the planet. Citizens can move to any other country in the region without lengthy paperwork, and borders are pretty fluid. Each of them is tied by similar cultural values, and the three Scandinavian countries can understand each other’s languages pretty well.
Moreover, each country has its own unique currency – with the exception of Finland, which uses the Euro.
Considering that you can get from Copenhagen to Sweden in less than an hour, it’s only natural to question whether you can use the Danish Krone in other Nordic countries. And the simple answer to that is no; even if you go to Malmö, you’ll need to use the Swedish Krona in most places.
Denmark isn’t in the Eurozone, and you shouldn’t bank on that changing any time soon
Denmark is one of Europe’s richest countries, and the nation is also a long-time member of the European Union. However, its relationship with the EU hasn’t always been straightforward — and the country likes to still keep some level of independence.
One clear example is its refusal to adopt the Euro as a national currency.
While much support exists within Denmark for joining the Eurozone, the country doesn’t have a real reason to do so. It’s still part of the EU, and its economy doesn’t require it to take up a new currency.
While the country might change its mind and join the Euro Area in the future, it’s not likely for now — and unlike several other member states, it has no obligation to. The idea of a second referendum has been discussed, but nothing has materialized.
Having read this article, you know that you’ll need to use the Danish Krone when living in Denmark. And if you choose to make this country your home, you’ll enjoy one of the highest living standards on the globe.
There are both pros and cons to living here, though, so you should read up on both beforehand.
Scandification: Discovering Scandinavia.
