The krone is the official currency of the Kingdom of Denmark. It is a decimal currency that is subdivided into 100 ore. The word krone is Danish for crown so English-speaking people often call the currency the Danish crown. The plural of krone is kroner. The krone is currently pegged to the euro to maintain its value in comparison with the currency of the Eurozone countries.
The krone was introduced in Denmark in 1873 as a replacement for the Danish rigsdaler. In this much older currency system, which had been in use since 1625, 1 rigsdaler was equal to 6 marks. In turn, 16 skillings equalled 1 mark, and 12 pennings equalled 1 skilling. The decimalised krone was introduced at a value of 8 Danish marks, but was the product of a joint currency system established by the Scandinavian Monetary Union, which originally consisted of Sweden and Denmark, with Norway joining two years later. Under the contract of the union, the nations shared a single monetary system pegged to the gold standard at 2.48 kroner per gram of gold. At the end of World War I, the Scandinavian Monetary Union ended, but each nation kept the same name for their new respective currencies. Denmark dropped the gold standard for the krone in 1914, but returned to it ten years later. The gold standard was permanently dropped in 1931. When Denmark was occupied by the Nazis in World War II, the krone was pegged to the German Reichsmark. At the end of the war, Denmark pegged their currency to the pound sterling at a rate of 24 kroner: 1 GBP, but it was devalued after the introduction of the Bretton Woods System when the krone was pegged to the U.S. dollar at a rate of 6.91 krone: 1 USD. The krone was again devalued in 1967 to a rate of 7.5 kroner: 1 USD.
When the European Union was formed under the Maastricht Treaty, Denmark was obliged to adopt the euro as its national currency in 1999. However, the country held out by negotiating for an exemption, as did the United Kingdom. A referendum held in 2000 that proposed the adoption of the euro was rejected, and a second referendum planned for 2004 never took place after polls showed even less support than before. The result was to peg the krone to the euro through the ERM II exchange rate mechanism without actually adopting the euro.