speech governor lars rohde, suerf conference, new york 16 october 2019 check against delivery dear ladies and gentlemen, thank you for the invitation to share my view on technological change and digitalisation in a danish and international framework. slide 2 : the nordics are digital frontrunners denmark is a highly digitalised country. together with the other nordic countries and the netherlands, denmark is a digital frontrunner with top rankings on digital performance. and digitalisation is indeed widespread throughout danish society. danes are heavy users of digital solutions and both the public sector and the private sector provide a vast amount of digital services such as online banking and e - commerce. these services are not only used by the younger generations, but also by the elderly : four out of five danes in the age group of 75 to 89 used online banking last year. slide 3 : the public sector provides a vast amount of digital services how did denmark become this digital frontrunner? the answer is that this position has developed over decades and that the danish government has taken an active role in supporting the digital transformation of the society. the decision to create a civil registration system back in 1968 was a key element in this transformation. the national register contains basic personal information on all citizens who have a civil registration number. a similar system for companies was implemented in 1985. these registries allow for unique identification of all citizens and companies and they constitute the basis for all public and many private digital services. since 2001 denmark has had multi - year public strategies for digitalisation. today, most public services are available on an online portal for public services – borger. dk – ( " citizen. dk " ), and the tax authority's homepage – skat. dk – ( " tax. dk " ). to facilitate digital interactions with public authorities each dane has a personal e - id to access services securely – nemid – ( " easy - id " ), a mandatory bank account for transfers from authorities – page 1 of 5 nemkonto – ( " easy account " ), and a digital mailbox for letters and messages from the public sector – e - boks – ( " e - box " ). when the infrastructure was in place, many online self - services were made mandatory, and in 2014 it became mandatory for individuals and businesses to use digital post when communicating with public authorities. in fact, 80 per cent of all letters from the government, banks, pension firms, etc. are digital and

the dem / dkk rate has been converted to a eur / dkk rate before 1 january 1999. 1 euro = 1. 95583 d - mark. source : danmarks nationalbank. 19. april 2017 other economic agents take peg as given consumer price inflation pct., year - year - 2 denmark germany source : oecd. substantial policy action since 2015 interest rate spread, percentage points 1. 0 sale of fx 0. 8 0. 6 0. 4 0. 2 0. 0 - 0. 2 - 0. 4 - 0. 6 - 0. 8 - 1. 0 jan 14 purchase of fx apr 14 jul 14 oct 14 jan 15 apr 15 monetary policy spread jul 15 oct 15 jan 16 apr 16 jul 16 oct 16 jan 17 money market spread note : shaded quarters illustrate quarters where danmarks nationalbank intervened for more than dkk 20 bn. ( net ). money market spread is the spread between 1 month ois rates ( i. e. eonia - and cita - swaps ). monetary policy spread is the spread between danmark nationalbank ’ s cd rate and the ecb ’ s deposit rate. source : rio, thomson reuters datastream, danmarks nationalbank and own calculations. 19. april 2017 normalization of fx reserves 19. april 2017 no surge in the demand for cash kr. billion jan 12 jan 13 jan 14 value of large notes in circulation jan 15 jan 16 jan 17 linear trend note : large notes are dkk 500 and 1, 000 notes. source : danmarks nationalbank. so far, households have been shielded from negative deposit rates per cent p. a. 2, 0 1, 5 households 1, 0 investment and pension funds corporates 0, 5 0, 0 - 0, 5 - 1, 0 source : danmarks nationalbank, financial stability, 2nd half 2016. april 17 banks are adjusting business models towards more fee - based income kr. billion interest income now makes up less than half of total income net interest income net fee income administrative margins on mortgages source : data on systemically important banks from danish financial supervisory authority and own calculations. april 17 central government debt the currency split – danish funding rules domestic funding rule t - bills and bullet loans • issuance in dkk to cover the deficit and redemptions of domestic debt method : auctions supplemented with tap foreign funding rule dollar and euro loans • issuance in foreign currency to maintain an adequate foreign - exchange reserve method