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It was in regards to the Maastricht Treaty in 1992, which was sort of the founding treaty of EU. In order to complete the transformation from European Communities to a European Union, all involved countries had to sign the treaty.
Some of the countries just couldn't legally give off this amount of sovereignty without a domestic election. Denmark being one of them. So, even if it's a small country, it had the same power as any other country to obstruct the founding of the entire union.
So when the election turned out a narrow "no", it was a bit of wrench in the wheel. Denmark then negotiated having a few opt outs before they were able hold a new election which then gave a "yes".
Well I'm looking at it from the other point of view, as in "you're not allowed to join the EU unless you convert to the Euro".
The EU didn't exist at all back then. Today, the EU can make such a demand of a new joiner, say for instance the United Kingdom, because it's the entire EU vs UK. In 1992, it was Voltron coming together, and they needed that left leg lion to keep him upright.
Old members had a deal there, like the UK did. New members need to join the Euro as part of their joining the EU package.