Danmarks Nationalbank’s decisions relating to monetary and foreign-exchange policy - including interest-rate decisions - apply fully and directly to the Faroe Islands. It must thus be concluded that the Danish krone is used as the currency of the Faroe Islands today.
The Faroese banknotes should be regarded as banknotes issued by Danmarks Nationalbank with text in Faroese, even though this is not explicitly indicated on the banknotes. This corresponds to the situation in Scotland where special Scots banknotes are used, but the currency is the pound sterling, and the Bank of England is the central bank for all of the UK.