Signe Krogstrup: Stablecoins and money
Speech by Ms Signe Krogstrup, Governor of Danmarks Nationalbank, at the Centre for European Policy Studies, London, 21 January 2026.
The views expressed in this speech are those of the speaker and not the view of the BIS.
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Thank you very much for the invitation. It is a pleasure to see so many familiar faces online today.
Today's topic is "Stablecoins and Money". Stablecoins have captured significant attention in discussions about the future of money. This reflects not only technological progress and innovation, but also, to a considerable extent, politics.
In my remarks today, I will speak from a monetary and financial standpoint. I will not engage in the technological details, as this is clearly not my area of expertise.
I will outline several key issues currently debated across the central banking community. My focus will be on monetary sovereignty, financial stability, and the evolving balance between public and private money. However, before I turn to these issues, let me begin with some introductory observations.
What is a stablecoin?
A stablecoin is a digital token designed to maintain a fixed value against underlying assets, most often a fiat currency, and is typically backed by cash or short-term government securities. It is basically a backed crypto asset, but without the price swings of unbacked assets such as Bitcoin.
In financial terms, stablecoins resemble long-standing instruments such as money-market fund shares or deposits in a narrow bank. Accordingly, many of the associated risks are familiar.