23 April 2025
This Easter, Danmarks Nationalbank successfully moved payments in Danish kroner from the Danish payment system Kronos2 to the pan-European system, TARGET Services.
By joining TARGET Services, Danmarks Nationalbank is united with the central banks of the Eurosystem in protecting payment processing against persistent cyber threats.
"We strengthen security by working together with other European central banks in the payments area. This is especially important at a time when the cyber threat is high and increasing," says Governor Ulrik Nødgaard.
Danes will not experience any changes on a day-to-day basis, but going forward their payments will be handled via a more robust and future-proof platform. Over time, the vision is that citizens will more directly experience benefits such as easier and cheaper access to instant payments across currencies.
"Economically it's also advantageous to share payments infrastructure across countries. The economies of scale in a centralised system will provide savings on the ongoing costs of operation, maintenance and further development," says Ulrik Nødgaard.
The Danish krone will be the first currency outside the euro to handle both payments and securities transactions on TARGET Services. Over time, more currencies are expected to join.
Danmarks Nationalbank has been working towards the migration since 2020. The schedule has been met and the total costs, shared between Danmarks Nationalbank and the banking sector, are lower than originally anticipated.
"The project has been realised in close collaboration with the Danish banking sector, the European Central Bank and other relevant parties. Throughout the process, the collaboration has been positive and purposeful, with a common focus and clear goals. The good dialogue and the sector's support have helped ensure that the project has been completed within the agreed framework – in terms of both cost and time. I would like to thank everyone for that," says Ulrik Nødgaard.
The press can contact Communications and Press Officer Teis Hald Jensen on tel. +45 3363 6066 or
FACTS:
Since 2018, Danish securities transactions in Danish kroner have taken place in the European system for securities transactions. The system is called T2S and it is also part of TARGET Services.
With the migration of the Danish krone to T2 and TIPS, the execution of payments and securities transactions in Danish kroner has been centralised on TARGET Services. Denmark is the first non-euro country to use T2, TIPS and T2S.
Sveriges Riksbank is already on the instant payments system, TIPS, and decided in June 2024 to begin the process with the European Central Bank, ECB, for participation in the T2 liquidity management and payments system and the T2S securities transactions system.
Norges Bank signed an agreement with the ECB in November 2024 to participate in TIPS and is also in discussions with the ECB about possible participation in T2.
In September 2024, the Central Bank of Iceland announced that it has initiated an assessment of whether the Icelandic krona should join TARGET Services.
Danish monetary policy will not be affected by the migration to TARGET Services. The existing monetary policy instruments used in the exercise of monetary policy by Danmarks Nationalbank are supported in the new infrastructure. These instruments are handled by Danmarks Nationalbank's own system for monetary policy instruments and collateral.