Denmark Aiming For Cash-Less Society – Will Bitcoin Play A Role?

by | 13 May 2015

Denmark Flag

Denmark is a country well-known for several things. First and foremost they have been awarded as the happiest country in the world, but they are also well-known for being very well educated and having a great economy – one of the best in the world per capita.

A society like theirs – and the rest of Scandinavia – is very pro-technology and is always looking for ways to make things more simple or cheaper compared to the way things are done today.

One of the things the country’s government is currently looking into is to make Denmark cash-less long-term, starting with a short-term plan where cash no longer would be accepted at restaurants, clothing retailers as well as on petrol stations.

While the idea is not yet approved, it seems that it may be. If so, it is just the first step on the way to making Denmark cash-less completely. Here’s where things gets interesting, because if that happens, can the Bitcoin play an important role?

Today most things are being paid with credit/debit card in Denmark, as well as through a mobile payment system, allowing people to pay and transfer funds directly from their mobile device. The transition towards not using cash at all wouldn’t be that hard for most Danish people, but do they wish to do so?

The problem in a cash-less society is privacy. There will be no privacy for anyone in a cash-less society, where the banks and government can track every single money transfer, payment or whatever else one does with funds.

Here’s where the Bitcoin comes into the picture. If there will no longer be cash to be used “anonymously”, where will people turn if they are not interested in the bank and the government knowing what they spend their funds on? That’s right, the Bitcoin.

The Bitcoin is already somewhat popular in Denmark, with many people using Bitcoins to gamble online, as well as pay in the few places that currently accepts it. The country also have three Bitcoin ATM’s, all located in the capital of Copenhagen.

However the Bitcoin may be boosted significantly when people finds out about the Bitcoin and its anonymous nature. Denmark has decided for now not to regulate the Bitcoin, allowing people to spend them as they want without having to be tracked by anyone.

So with one of the strongest economies in the world, the Bitcoin may get a significant boost in the right direction from 2016 already, when people wants to be able to spend money without being tracked.

But it will not only be good for the general public if the Bitcoin gets a boost in Denmark, as the shops who will be forced to accept credit card payments will want to have a cheaper alternative. Credit card fees are extremely high and cuts directly into any profit margin, while the Bitcoin is free to accept and costs almost nothing in general.

Coinify, a Danish Bitcoin exchange and Bitcoin payment system provider, are ready to provide shops, restaurants and whatever else with the opportunity to accept Bitcoins and convert the funds into fiat-money. This way we all win – There will be no traceless cash and we will all still have the possibility to pay in an anonymous way, whilst the shops saves money in fees.