The Danish government has proposed that most stores could dump their cash registers from January 2016.
Essential services, such as hospitals, pharmacies and post offices, would still have to accept cash under the plan, which is some way from becoming law.
Denmark, with its Scandinavian neighbors , is leading the global trend towards electronic money.
Business groups point to benefits such as reduced handling and transport costs, increased security and a drop in attempts to steal cash.
Right now all retailers in Denmark must take cash. But that hasn't stopped huge numbers of Danes embracing digital options.
Nearly 40% of the population use Danske Bank (DNSKY)'s MobilePay, which allows money transfers between people, as well as purchases in stores or online.
Even the United Nations, alongside the Bill and Melinda Gates Foundation, wants societies to forego cash for more virtual transacting. It wants to cut costs and improve transparency, and is working with governments and the private sector to encourage more use of electronic payments.
Digital transacting carries growing fraud and security risks, while the elderly and marginalized groups have limited access to electronic payment options.
Total card fraud in Europe hit €1.3 billion ($1.4 billion) in 2012, a near 15% jump on the year earlier.
