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Presentation Details

The Banknote Conference provides our delegates with a wide range of informative and thought-provoking presentations from the leaders in the public and private sectors of the banknote industry. The presentations focus on the latest technologies and trends in the design, security, durability, production, quality and circulation in the world’s banknotes.

Presentation Highlights from Banknote 2016

Below is an overview of some of the presentations that were delivered at the last conference, Banknote 2016.

Special Welcome Address and Presentation by Rosie Rios, Treasurer of the United States

Designing, Producing and Issuing a New Series

Design Process for the New 2015 Nicaraguan Banknotes

Banco Central de Nicaragua
Guillermo Selva, Ejecutivo en Valores I, Dirección Tesorería

The Central Bank of Nicaragua has introduced a new series of Banknotes in 2015. The highest denomination, 500 córdobas, is printed on paper substrate, while the others are printed on polymer (including for the first time the 100 córdobas). The banknotes have been redesigned and upgraded with leading-edge security features. The 500 córdobas for example is one of the first banknotes to include SPARK Live and also features DualTrack security thread. The 200 córdobas is the first circulation banknote in Nicaragua to include LATITUDE. The presentation will explain the criteria for selection of images, materials and security features, used in the design of the new córdoba banknotes. The presentation will also explain how the BCN’s decisions for the new series were based on knowledge acquired through experience in previous issues by the bank.

New High Denomination Banknote of $100,000

Banco de la República
Nestor Plazas, Chief Officer, Industrial & Treasury Division

In 2016, Banco de la República will gradually start circulating a new series of banknotes comprising six denominations: $2,000, $5,000, $10,000, $20,000, $50,000 and $100,000.

The main purpose of this new series is to strengthen the security of banknotes and facilitate their verification by the citizens. While many countries in the world update their banknotes every 10 to 12 years, Colombian banknotes haven’t had major modifications over the last 18 years. Although the counterfeiting rate in Colombia is low, updating the banknotes will strengthen their security and will maintain public confidence in cash.

With this project, the Central Bank responds to the needs of the Colombian economy, and incorporates a new image into its banknotes as homage to prominent figures of the country and exalting the richness of its biodiversity.

The new series includes a new high denomination banknote of $100,000. In order to determine the need for this new denomination by the economy, Banco de la República, as do many other Central Banks, uses statistical models that consider economic variables in the country such as the average income of the population and the minimum wage. The idea behind the model is that as the levels of per capita income and wages rise, the value of transactions undertaken by different economic agents also increases, and this is reflected on a higher demand of monetary species (notes and coins), especially those of the highest denomination, to the detriment of other denominations.

Since 2000, when the current highest denomination ($50.000) was issued, the minimum wage and the per capita income of the country have almost doubled and tripled, respectively. As a result, the amount and the volume of transactions in the economy have increased, pushing the demand for high denomination banknotes. Thus, the share of the $50,000 banknote within the total pieces in circulation (32.5%) is more than twice than the one for the $20,000 (14.9%) and the $10,000 (11.4%) banknotes. This need for a higher number of banknotes for commercial transactions generates higher costs to the economic agents as well as to the Central Bank.

On the other hand, the US dollar equivalence of our current highest denomination (approximately US $16) is lower than in other countries of the region and in the vast majority of developed countries, e.g.: Chile (US $21), Brazil (US $28), Mexico (US $60), Peru (US $62), Uruguay (US $70), UK (US $77), Japan (US $83), United States (US $100), Hong Kong (US $129) and Euro Zone (US $559).

The new $100,000 peso banknote reduces transaction costs to the economy as a whole (i.e., fewer banknotes and lower transportation costs) especially for higher-value transactions performed in cash by economic agents.

Introduction of New Designs and Security Features in Indian Bank Notes - Evaluation and Indigenisation

Bharatiya Reserve Bank Note Mudran (P) limited
Kaza Sudhakar, Managing Director

Banknotes reflects the contemporary culture and aspirations of the nation and at the same time, the design and security features of the Banknotes offer aesthetics, easy validation by various stakeholders and strong protection against counterfeiting. It is in this backdrop that new designs and security features are introduced in Indian Banknotes.

Various steps in introducing New Indian Banknote series includes:

  • Selection of theme for Banknote Design

  • Selection of Security features

  • Functional Layout

  • Introduction of Design elements

  • Procurement of Security Features

Theme for new banknote designs and selection of security features for Indian Banknotes is done by a high level expert committee constituted by Government of India and Reserve Bank of India which also includes members from state printing works and other Indian research institutions. Selection of Security features for Indian Banknotes is carried out through a transparent global request for Information. Details on the Basis for Selection of security features for Indian Banknotes will be explained in the presentation.

On selecting the matrix of security features for various Indian Banknote denominations, a functional layout is prepared depicting the location for the selected security features. Design elements are introduced to merge with the theme and security features. While the supply of security features is determined by the global procurement process, design for Indian Banknote is made in the In-house design studio of state printing works. This presentation will provide an overview on the design policy, objective, methodology and approach of Indian currency agencies in introducing new series of Indian banknotes.

This presentation will detail about the challenges in the procurement of security feature vis-à-vis remedial solutions. Main focus of this presentation will be on the objective evaluation methodology that is adopted in the selection of security features and suppliers. The evaluation methodology is novel and unique in the Banknote Industry which will be based on the quality and cost based system as against the selection based on the price or performance alone. This methodology ensures the right balance in selection of the optimal feature which is technically superior in terms of ease of validation and counterfeit deterrence at the same time commercially competitive. This presentation will detail about the various parameters with appropriate weightage that is considered for objective selection of suppliers and features. Details of the parameters vis-à-vis their factoring will be discussed in the presentation.

The presentation also will feature about the various initiatives that are being taken by India in the currency sector to encourage the domestic talent and develop indigenous capacity in the wake of the “Make in India” initiative of our honourable Indian Prime Minister.

Various policy initiatives such as reservation and incentives for domestic production, import component restriction etc., for encouraging domestic production will be discussed during the presentation.

India being one amongst the leading banknote producers in the world, sharing the experiences in selecting the design and security features for Indian Banknotes is expected to be a central point of discussion in the forum like Banknote conference which attracts various Central Banks, State Owned printing Works, Private printing works and leading suppliers of security features and materials.

The Next U.S. Series and the Need for Meaningful Access

Bureau of Engraving and Printing
Len Olijar, Director

Mr. Olijar, will provide an update on the ongoing process to design the next series of U.S. banknotes and the current status of that project. The presentation will review the challenges of enhancing security, providing new features for the visually impaired, as well as changing the people portrayed on U.S. currency for the first time in 90 years, to include a woman.

The presentation will focus on efforts to develop new security features and the selection process. The presentation will focus on the status of the redesign efforts and the plans for the future.

Mr. Olijar will also cover the US Department of the Treasury’s multi-pronged approach to providing meaningful access to US Currency for the visually impaired.

Innovative Design of the New 200 Zloty Note

Central Bank of Poland (Narodowy Bank Polski)
Grzegorz Biernat, Head of Banknote Quality Control

The Central Bank of Poland (CBP) are making significant milestones in the introduction of leading technologies for their banknotes. The CBP would be proud to present a paper related to the innovative design and world-class features incorporated in the new 200 Zloty note, and proposed future developments for other notes in the series. The 200 Zloty note has been announced on the website of the CBP, and will be issued in February 2016. The presentation will focus on the development process adopted for creating this banknote, as well as the plans for the future denominations.

Detailed information relative to the new 200 Zloty can be found on the Bank’s website:

Time for a New Approach?

De La Rue
Jacqui Thick, Director of Cash Management

The world of cash is changing with increasing volumes, more automation in the cash cycle and more sophisticated digital technology available to counterfeiters. As a consequence the complexity of banknotes has reached new levels to incorporate new feature technologies and work with the broader range of cash handling equipment now in use.

In response to this changing world, the buying behavior of central banks has also undergone a change with a greater tendency for central banks to source technology and services from multiple suppliers. However this fragmentation of the supply chain generates new challenges for central banks as a consequence of the increased involvement, resources and skills required to manage this process effectively. Issues with the levels of communication and co-operation between the various suppliers can further compound these difficulties.

This presentation will explore, in a challenging and thought provoking way, whether central banks and the currency industry is really working together in the most effective way for all stakeholders and will suggest new approaches to improve how the industry works in the future.

The Euro Banknotes: Recent Experiences and the Challenges Ahead

European Central Bank
Ton Roos, Director, Banknotes

An update will be provided of the most recent developments around the Europa series of euro banknotes and preparations for the remaining denominations. Three denominations have already been introduced (€5, €10 and €20). The €20 including the “portrait window” near the top of the hologram stripe; the first window to be produced in large volumes on cotton-based paper. The presentation will compare the €5 and €10 banknotes of the Europa series which are varnished, with the same denominations of the first euro series which were not varnished, and the differences in lifetime between the two series. The presentation will review the measures to support banknote equipment manufacturers (BEMs) and other industry stakeholders to further improving preparations for the adaptation of banknote equipment to the €50 banknote of the Europa series. The result of recent studies around the use of cash will also be covered, the continued increase of euro banknote circulation volumes and an update on euro banknote counterfeit matters.

Detailed information on the euro banknotes can be found on the ECB’s website:

New Norwegian Banknote Series

Norges Bank
Trond Eklund, Chief Cashier

A comprehensive review of the process utilized by the Norges Bank in designing, producing and issuing a new banknote series. Topics include: choosing a theme, design elements, security features, selecting substrate, public education, and issuing strategy. This is a comprehensive look at all the aspects faced by a Central Bank when considering a new series.

This presentation will interest any Central Bank considering a design change and any supplier considering meeting the future needs of Central Banks involved in a design change.

A New Take on a Swiss Original

Swiss National Bank
Beat Grossenbacher, Head of Cash (SNB) and Manuela Pfrunder, Designer

The Swiss National Bank (SNB) will present the story of the new Swiss 50-franc note, which will be issued in April 2016, to the Banknote Conference. The 50-franc note is the first of the new series, which will incorporate innovative security features and sophisticated designs.

The presentation will focus on the challenges faced and overcome in all stages of the project, including: the initial idea, planning, public education and issuance. In this presentation, the SNB will report on challenges and experiences regarding organization, technical development and design.

The designer, Manuela Pfrunder, will present her design concept too, and explain her experience and the challenges she faced, particularly regarding the conflict between the aesthetics, function and suitability for production of a banknote.


Printing Technology

Fundamental Research on Improving the Tactile Properties of Printed Sheets

National Printing Bureau of Japan
Satoru Fukuda, Research & Development, Fundamental Technology Division

Fundamental research was carried out on improving the tactile properties of printed sheets such as banknotes. The characteristic tactile properties of intaglio printing, etc. are important in identifying denominations. However, the mechanism behind these tactile effects has not yet been fully reported, and key factors for their improvement remain to be elucidated.

This research was begun with reference to literature on the basic elements of tactility. It was found that the tactility of lines in intaglio printing, etc. could be efficiently improved by a) increasing the edges of lines and b) regulating line widths and spacing. These modifications produce specific and significant improvements in tactility because the user can easily detect the characteristic tactility of the periodically spaced raised parts. Accordingly, the three experiments described below were carried out to determine ideal line widths and spacing.

The first experiments involved three intaglio printing samples with basic patterns featuring repeated straight lines, grids and repeated dots. Changes were made in the specifications of the patterns (i.e., line widths, dot diameters and line/dot spacing) and the resulting tactile properties were examined. The tactility of the samples was tested by around 20 persons using a modified paired comparison method, with results showing that each basic pattern had a certain range of specifications that would optimize tactility produced by intaglio printing. The experiment was extended to involve around 150 persons, and the optimal specifications for tactility were found for each basic pattern.

Next, testing was carried out to determine which basic pattern produced the best tactility from intaglio printing among straight lines, grids and dots. More than 70% of people answered that repeated straight lines gave the best tactility. Accordingly, it was concluded that intaglio printing of repeated straight lines with optimized widths and spacing yielded optimal tactility.

The relationship between the size of repeated straight lines of intaglio printing and their tactility was also analyzed. The results showed that the length and number of the lines must be above certain values to create sufficient tactility. In particular, tactility depended more on the number of lines than on their length.

The results of the research indicated that the tactile properties of printed sheets can be optimized by adopting repeated straight lines within certain ranges of width and spacing. This information is expected to be useful for improving the tactility of banknotes and other printed materials and enhancing functions such as denomination identifiability.


Issue and Circulation of Banknotes

Polymer Durability – The Canadian Experience

Bank of Canada
Erik Balodis, Assistant Director, Banknote Design & Technical Analysis Team

In 2011, the Bank of Canada issued its first polymer bank notes, representing a significant technical departure from previous paper series. While the Bank of Canada has a wealth of experience and data on its paper Journey series bank notes, sufficient time has been required to obtain an equivalent data set on polymer Frontiers series bank notes. Over the course of the last five years, we have built our data set and analysis of circulating polymer bank notes, obtained using new high-speed sorting sensors developed for the polymer series. Further, to aid in decision making on inventory management, the Bank of Canada has developed novel mathematical models for both paper and polymer note lifetime estimates, drawing from the Bank’s collection of circulation data. We present, for the first time, an analysis of a full series transition ($5, $10, $20, $50, $100) of Canadian bank notes in circulation from paper to polymer, and highlight trends in wear mechanisms and impacts on calculated note lifetimes.

Future Demand for Cash

Bank of England
Victoria Cleland, Chief Cashier and Director of Notes

The payments landscape has changed considerably in recent decades. People can now make payments using debit and credit cards, internet banking, mobile wallets, smartphone apps, and even alternative currencies.

Yet despite these developments, cash remains important. Growth in the demand for banknotes continues to grow faster than GDP across many countries. In the UK, the drivers of this demand are sometimes surprising. While the use of cash for transactional purposes has been fairly steady, the demand for cash as a store of value, and demand from overseas has been growing.

The future rate of growth in demand will depend on many different factors. These will include developments in alternative payment technologies, alternative currencies, retailer and financial institution preferences, potential government interventions, and socio-economic developments. Finally, it will depend on the public’s attitude towards cash.

Although we cannot be certain how these influences will interact to affect demand, central banks and the cash industry need to prepare for banknote demand persisting in the future. Central banks will need to continue to incorporate the latest technology into their banknotes so that they remain resilient to the threat of counterfeiters. The cash industry will also need to innovate, and will have to remain cost-efficient by employing new distribution methods and making use of increasingly sophisticated machines, while ensuring that banknotes are regularly and properly authenticated as they pass through the cash cycle.

In this session, Victoria Cleland, Chief Cashier and Director of Notes at the Bank of England, will discuss how demand for banknotes has evolved in recent years, the factors that are likely to influence demand in the future, and what this could mean for the cash industry.

Re-Circulation of Currency in Ghana—Update on Policy and Technology

Bank of Ghana
Catherine Ashiley, Head, Currency Management Department

The presentation will provide a brief overview of the evolution of currency processing for re-circulation and its related policies.

Currency examination for re-circulation in Ghana, for many years, involved counting, manual sorting and repackaging of banknotes. During that time, the key security feature was the Ultra Violet (UV) absorption property of banknotes.

The concept of Clean Note Policy which requires all cash handling entities to re-circulate only good quality banknotes in accordance with predetermined standards has been the key policy driver. The objective of the policy is to maintain confidence and integrity in the local currency.

Before 1990, Bank of Ghana’s Clean Note Policy depended mostly on manual processing. Thereafter, Bank of Ghana (the Bank) started deploying banknote processing machines to complement the manual processing system at its Head Office and Kumasi Branch. The initial Banknote Processing equipment, ISS300, was procured from Giesecke & Devrient (G&D). Between years 2003 and 2005, the Bank completely discontinued manual sorting and the use of the ISS300. The Bank then established two (2) banknote processing centres equipped with modern BPS1000 machines; four each at the Head Office and Kumasi Regional Branch.

Thereafter, following recommendations of a Cash–Cycle review undertaken in 2009 by the Bank in consultation with a consultant, a directive was issued to all Deposit Money Banks (DMBs) stipulating modalities for fitness sorting and detection of counterfeits. In line with the directive, DMBs were to comply with the following:

  • Only Banknotes which have been authenticated (i.e. verified for counterfeits) and fitness sorted should be paid over the counter by banks or through their cash dispensing machines.
  • Only cash machines which have been duly certified by the Bank and issued with an approved certification could be used for processing cash for re-issue by DMBs.
  • DMBs are to deposit banknotes at Bank of Ghana only after such deposits have been authenticated and fitness sorted.
  • All processed UNFIT banknotes are to be returned to Bank of Ghana.
  • Counterfeits notes and banknotes suspected as counterfeits shall be immediately handed over to Bank of Ghana.

In addition, the Bank introduced penalties for counterfeit banknotes detected during processing of DMBs deposits.

However, the time for full implementation of the standards has been deferred to enable the DMBs build sufficient processing capacity. Presently, processing of currency for re-issue by the DMBs continue to comprise a mix of manual procedures and automation. Meanwhile, the Bank has steadily increased its processing capacity by consistently adopting strategies to improve the daily outturn of clean banknotes and coins.

In 2012 and 2013, the Bank installed additional twelve (12) BPS M7 machines (four (4) in Takoradi and eight (8) in the New Ultra-modern Cash Centre in Accra). While the BPS M7s in Takoradi have been fully deployed, those in the New Cash Centre are being operated on a test-run basis pending full scale deployment of an Enterprise Cash Management Software procured from De La Rue and Vault Racking Solution from G&D. It is expected that the Cash Centre will be commissioned in the last quarter of 2015. Currently with the consistent improvement in processing infrastructure, the backlog of cash has been reduced from an average of 60% in 2011 to 15% in 2015.

Bank of Ghana remains committed to ensuring that only good quality banknotes are re-circulated. While ensuring that DMBs acquire the requisite technological capacity to meaningfully participate in the realization of this objective, the Bank has taken steps to increase its own capacity to churn out clean banknotes to the public and the results are quite encouraging.

This is a story worth sharing! The presentation will conclude with a short video on our New Cash Centre in Accra; an idea and lessons learnt from a presentation by a Representative from Hungary at a Currency Conference in Prague, Czech Republic in 2008.

Banknote Substrate Durability: A Live Circulation Comparative Study

Banque du Liban (Lebanon)
Mazen Hamdan, Director, Cash Operations Department

Banknotes Technical specifications in central banks are generally based on two pillars: Security and Durability. Durability is the period of time in which a circulated banknote is still in good conditions for circulation with respect to the fitness criteria of the central bank. Banknotes continue to circulate, if a returned banknote, to the central bank, does not meet the fitness criteria, then it is taken out of circulation and destroyed. The most important factors affecting the durability of the banknote are: The substrate treatment, the climate and the public habits in handling banknotes. The durability varies by banknote denomination. Lower denominations have higher velocity than higher denominations and are more often used for transactions.Figure 1

Banque du Liban (BDL) the central bank of Lebanon has launched a research project aiming at studying the evolution of a banknote with time and at measuring its durability.

The project consists of putting into circulation 11 million banknotes of the lowest denomination (1000 LBP) along with the existing banknotes in circulation from the mentioned denomination. The trial banknotes, have the same design of the banknotes in circulations, belongs to 11 groups representing several substrates, varnishing and intaglio printing. The table in Figure 1 shows the 11 groups of trial banknotes representing 7 well known substrates and a variation of varnishing and intaglio printing.

BDL has 9 branches deployed in all Lebanese territories from north to south and from the coast to Bekaa Valley. The head office of BDL is the exclusive cash center, in Lebanon for Lebanese pound. In fact, all deposited banknotes, in all branches are transferred to the head office for counting and sorting.

Counting and sorting operations are performed at the head office, cash operations department, where the cash center is equipped with five M7 machines capable to capture the serial number of each banknote.

Lebanon is located on the eastern edge of the Mediterranean and characterized by its geographical and weather diversity.

We present a proposition of a live circulation trial of banknotes aiming at measuring the durability of a banknote. The proposition is based on studying the evolution, with time, and the durability of 11 million banknotes, from the lowest denomination, in circulation. The 11 million banknotes represents the same design but different substrates, varnishing and intaglio printing techniques. In addition to substrates and printing techniques, the proposition considers the public habits in dealing with banknotes and the climate variation and all its consequences related to unfit reasons of the banknote: soiling, humidity, and etc.

New Approaches to Educating a Global Public About U.S. Currency

Federal Reserve Board of Governors
Michael Lambert, Associate Director

The Board of Governors of the Federal Reserve System will present a summary of recent education initiatives in support of their global banknote education program. Topics covered will include insights from the launch of the educational website, as well as an update from two major international and domestic outreach efforts. Issues addressed will range from tactics to improve search engine optimization to best practices for using partners to spread educational messages.

Does Banknote Quality Affect Counterfeit Detection?

De Nederlandsche Bank and Deutsche Bundesbank
Frank van der Horst, Cash and Payments Division, De Nederlandsche Bank and Susann Sieber, Cash Department, Deutsche Bundesbank

Central banks aim to keep the banknote circulation clean. Providing fit banknotes to the public helps to maintain confidence in the currency. Besides, banknotes must be capable of being used in banknote equipment. Another sometimes used argument is that a clean circulation helps in counterfeit detection. Therefore some central banks increase their sorting standards by applying a “counterfeit factor”, which means that they destroy more banknotes to make it easier to detect counterfeits. However, there has not been any scientific proof for this position.

Are counterfeits indeed better detectable when the fitness quality of the banknotes in circulation is high or is the quality of these surrounding notes not of any influence? The answer to this question helps in optimizing the circulation quality in a country.

For that reason De Nederlandsche Bank and Deutsche Bundesbank executed a joint field study among 250 consumers and 261 retail cashiers. Participants in the Netherlands and Germany received a test set of 200 notes, of which 20 were frequently occurring counterfeits. Participants’ main task was to separate the set in genuine and counterfeit banknotes. The genuine notes in these test sets were either clean or less clean.

In a clean test set the detection rate of cashiers indeed increases. However, this comes at the cost of erroneously classifying genuine notes as counterfeits; one gets more suspicious. Consumers’ counterfeit recognition performance does not improve significantly when the circulation is clean. Obviously cashiers perform in general better on the task, since they handle considerably more banknotes than consumers. The study confirms this learning effect, as the ability to detect counterfeits increases during the test.

The results and recommendations of the study will be presented, also answering the following questions:

  • Is it correct to tell that it only takes a few seconds to check a banknote for genuineness?
  • Are youngsters better in an authentication self-check than older people?
  • Is it helpful to check more security features?
  • How do participants perceive brand new banknotes?
  • Which kind of counterfeits are easy to recognize by the public and which are the most difficult ones?

Eddies, Bunching, Fluff, and Goo—How the Federal Reserve Manages Currency Quality

Federal Reserve Bank of Richmond
Roland Costa, Senior Vice President and Chief Technology Officer

Managing the quality of $1.3 trillion of currency in circulation is a challenging task. The Cash Product Office how the Federal Reserve will provide a presentation that demonstrates how they utilize a portfolio of sensors, surveys, and standards to maintain currency in circulation that is fit for commerce and why things like eddies, bunching, fluff, and goo matter.

Like eddies in water, currency eddies are excessive circular movements of currency in the market that can be caused by a variety of market forces. You might see this in a semi-remote region like Boise Idaho or a more remote region like Alaska where currency continues to recirculate due to transportation costs, causing poor quality notes in circulation in the market, or perhaps the re-circulation of counterfeits. Central Bank policy can also influence eddies. Say commercial banks fear hefty cross-shipping charges, for example, and choose to re-use notes rather than deposit them at the central bank for processing. We'll talk about some of the work we do to identify/prevent eddies.

Bunching can occur when the central bank either requires or sets private sector currency quality standards to encourage private sector re-circulation, and the notes returned to the Fed are mostly unfit. The marginal number of fit notes that will inevitably be generated from central bank processing (unless you run in shred all and prematurely destroy some notes) create a bunching effect where the fit notes are marginally fit such that the overall package - say the strap or bundle - appears to be poor quality. We see this with our recirculation of fit notes in the Puerto Rico market and the subsequent unfit notes returned to the NY Fed for processing.

When we upgraded our sensors and changed our note facing policy, we saved the Board of Governors roughly $24M per year in print cost savings. That's a huge win for the American taxpayers. And we extended the useful life of the $1 note to nearly six years. That’s phenomenal for a non-polymer based substrate. And while those older notes are "fit" from a soiling perspective, they tend to be more limp, and the fit bundle packages tend to be fluffier or thicker. We'll talk about the impact.

Finally, we'll talk about sensor design and how the notes brushing up against the sensor can create a sticky residue or goo on the lens that can obstruct the sensor functionality. We'll share what we know and what can be done about it.

The Fiji $5 - The Story So Far

Reserve Bank of Fiji
Ravi Kamoda, Director Currency

In December 2012, the Reserve Bank of Fiji launched a new banknote series. Issued into circulation the following April, this series saw the introduction of polymer banknotes into the country, for the first time. After an evaluation of the denominational structure of the previous series, the lowest denomination, the $2, was coined, and the $5 banknote was changed from a paper to a polymer substrate, De La Rue’s Safeguard®. This presentation will discuss the decision-making considerations and process the Reserve Bank undertook around substrate selection. It will then focus on performance in circulation of the $5 – the first set of data for a banknote produced on Safeguard®.

The Optimised Cash Cycle: Greater Cooperation for the Future of Cash

Claude-Alain Despland, Head of Security Features and Jean-Yves Ray, Marketing Director

In a world where alternative modes of payment are gaining significant ground, cash’s continued role as “King” depends on the optimisation of the cash cycle. The cost and logistics of processing and distributing cash is the single most frequent argument used in favour of a wider – and possibly full – adoption of other, cashless, modes of payment. Significant steps have been made over the years to rationalise the cash cycle: banknote durability solutions such as alternativesubstrates and varnishes; greater cash accessibility through the installation of ATM machines; and a greater decentralisation of the cash distribution process. Nevertheless, room for improvement still exists and the mere survival of this unique and tangible mode of payment depends on it. There is already a push for greater automation in the handling and processing of cash; a move that not only offers greater efficiency and lower costs, but also offers a greater probability of identifying counterfeits when the machines are appropriately calibrated to detect machine-readable features.

However, automation should be brought to the next level to also include banknote recycling systems, greater sophistication in the detection of counterfeits and smaller, more cost-efficient machines accessible to smaller banknote branches or even retailers. The cash cycle should be shortened to offer greater speed of distribution and lower costs as examples in Finland and the European Union have proven. By decentralising the cash cycle and fostering greater cooperation with key stakeholders of the cash supply chain such as commercial banks and their branches, the need for transporting notes is reduced. Also, to reduce CIT costs even further, the use of staining inks has proven to be an effective cash theft deterrence system. These initiatives not only result in lower costs but also have a positive environmental impact.

The future of the industry calls for greater synergy between banknote industry players in order to optimise the cash lifecycle. BEMs, security printers, security features providers, designers and central banks are all responsible for the efficiency, quality and security of the cash cycle. Improvements in this direction will inevitably respond to the public’s need for greater cost-effectiveness and will offer the necessary platform to address future concerns. Dr Pierre Degott will lead us through an original journey of a banknote’s life presenting current trends and developments that could positively influence the cash cycle and the future of the banknote industry.

The Impact of Investigative Efforts on Counterfeit Passing Statistics 

United States Secret Service
Kerre Corbin, Counterfeit Specialist

The past several years at the Secret Service have demonstrated many successes in the suppression of counterfeiting of the US Dollar. Thanks to several counterfeit production plant suppressions, the efforts of anti-counterfeiting task forces in Colombia and Peru, and public outreach through “Operation Corporate Blitz”, the United States has seen a reduction in the passing activity of counterfeit Federal Reserve Notes. This presentation will highlight several investigative efforts and demonstrate the impact that they have had on counterfeit statistics.


New Technologies, Features, and Materials

Advances in Watermark Technology

Arjowiggins Security
Fernand Garcia de Cruz, Marketing Director, Banknote Paper

Engaging users in banknote authentication is key in fighting against counterfeiting. Banknote security features must comply with new requirements: they must be easy to find and understand, and quick to identify without any possibilities of errors. In this context, security features of level 1, visible to the naked eye, have become the main priority for development of new security features. Watermarks and security threads are the most important features proposed by paper manufacturers to authenticate banknotes and protect them from counterfeiting attempts. Used in banknotes for decades, the public knows them very well and relies on them to check whether a note is genuine. As an integral part of the paper, they are both very robust and durable.

With the development of the Pixel watermark, Picture thread, and more recently the Wink thread, Arjowiggins Security has a long tradition of innovation in banknote paper security features. In keeping with this, we will present our new improvement in watermarks.

You Can Do It! A How to Guide for Disaggregating Your Supply Chain

Tim Driscoll, Vice President & General Manager, Currency & Tax Stamp

Today’s secure banknotes involve the harmonious combination of advanced security features and stunning aesthetic designs. The daunting nature of the banknote design process creates a tendency to rely on a small number of suppliers for multiple features and services. Although this may be an easier process to manage, it often sacrifices the use of best of breed features for expediency.

Authentix will highlight the approaches to disaggregating your supply chain in order to achieve a successful and cost effective note design that is most suited to your preferences and particular challenges.

Designing for Rapid Authentication

Crane Currency
Karin Mörck-Hamilton, Head of Design

The presentation will describe a designer’s perspective on introducing effective security into low denomination banknotes. The high transaction velocities, routine maltreatment and the public’s general inattentiveness to security features in low value banknotes combine to present one of the greatest challenges to the banknote designers craft.

"Expect the Unexpected" - The Story of How Cooperation Drives Innovation in Banknote Design, Production, Usage and Destruction

Dutch Currency Association (DCA)
Jos van Leeuwen, Managing Director of Royal Joh. Enschedé

A story which starts as the fairy tale, Little Red Riding Hood. It is well known: the nice little girl visiting her dear grandmother. Meeting the Wolf, who advised her to take a shortcut, the dangerous trail through the dark forest. Arriving at Grandma, were the Wolf… Fortunately the story has a positive ending! This famous fairy tale is an introduction to a serious business story. About well reputed companies and talented individuals, each bringing their own expertise and capabilities to the table. Working together in close cooperation, developing and innovating by sharing and building upon each other’s idea’s. Not following the usual path, but setting the trail. This story also has a positive ending… a special banknote, with new features, new methodologies… Expect the unexpected!

Innovative, Integrated, Ingenious Banknotes—The Heart of Cash Cycle Security

Giesecke & Devrient/Louisenthal
Dr. Wolfram Seidemann, Chairman of the Board of Managing Directors

Currency departments are often characterized as very conservative. When issuers start to plan a new series, however, they have to take a look into the future, for perhaps the next 10 years, being the average lifetime of a series. They need to know what’s available, and anticipate the cash cycle demands and counterfeit threats. They will use a formal comprehensive planning approach to ensure the maintenance of future security in the currency. This means new, stimulating and innovative banknote concepts must be considered when planning a new series. Issuing “smart"" banknotes can lead to lifecycle extension.

Banknote authentication should be as simple, interesting and exciting as possible. And new effects catch the eye more instantaneously than old features. For the public to remember and authenticate the banknotes effectively with minimal effort, the features on the note must interact with the user and within the features themselves. The full ensemble -embedded, applied and printed features- need to be designed and integrated as a whole, to create surprising and stunning effects. After all, how many seconds can we expect an average citizen to spend authenticating the notes?

This presentation focuses on the task of finding new intelligent combinations of design and effects across the many technologies and production steps of a banknote. Cross-referencing recognizable and interesting images in paper, print and applied features simplifies the authentication process and augments the interest in the note design.

Banknote security can be significantly enhanced when similar effects are created with different technologies at different stages of the production value chain. Requirements for all three stakeholder levels must be met, and the mechanized requirements for authentication checks via sensors, systems and devices in high-volume sorting applications must be integrated. Hence the improvements to cash cycle efficiency.

Dr. Seidemann will present exciting and sophisticated banknote concepts for an efficient cash cycle and to stay ahead of counterfeiters.

A New Paradigm in Banknote Security

Innovia Security
Steve Casey, Director, Sales & Marketing

With a track record of innovation established with the delivery of the first polymer banknote in the world in 1988, Guardian® has moved from a disruptive outsider to an accepted and trusted banknote substrate that has consistently proven its benefits in a wide range of banknote handling environments. Over recent years, Innovia has pursued a plan to expand its anti-counterfeit proposition to combine three key products – Guardian® with Clarity™C and Verus™.

This presentation will explain how these key products work together to create a counterfeit-shield approach that delivers expanded banknote security, taking pressure off the total cash cycle by diminishing the systemic costs of handling counterfeits.

Preservation of the Environment When Manufacturing

Komori Corporation
Phil Holland, Senior Sales Manager

There are people that ‘make things happen’. Then there are some who ‘watch things happen’. There are some that ask ‘what’s happened?’ The world is constantly changing. Industries are faced with adapting to environmental issues and the print industry is no exception. Protecting our environment, and reducing the carbon footprint, should be all manufacturer’s most important responsibility. Every manufacturing company has a responsibility to reduce the harmful effects of their activities on the environment. They have a responsibility to their employees, their suppliers and most of all their customers. Protecting the environment, when manufacturing any product, should be the most important social responsibility of that manufacturer. This must be achieved by creating a ‘model’ for green initiatives within the print industry. Environmental Responsibility can be easily built in to a manufacturer’s projects and products. Komori’s motto is to “Make Your Mark without Leaving One!”

Mitigating Development Risks Through Cooperative Approach

KBA-NotaSys and Canadian Bank Note Company
Johannes Schaede, Technical Director at KBA-NotaSys and Michael Hans, Chief Engineer at Canadian Bank Note Company

The development of new materials, features and technologies becomes more and more a challenge for the launch of new bank note series. The Central Bank has to balance the necessity to make the bank note secure for the duration of the circulation, that is to foresee the potential attacks from counterfeiters. At the same time it has to be ensured that there are no technical issues in circulation may his be in the automated cash cycle or the public. The first demand is the driver of new features materials and processes, which with the element of risk needs the proper containment. In most cases the influential factors are not limited to one supplier but is a combination of substrate, applied materials such as inks or films, the production machinery, the operation of the process, the design which integrates these factors and last but not least the proper quality assessment. All these elements have to be properly aligned if novelties are demanded. They all meet on the shop floor and production where the final result will be assessed. In the case of the new Series of the Central Bank of New Zealand such demands had been, amongst others, defined for the application of a refractive film feature in the window of a polymer note. The producer of the note had assembled all contributing parties at the outset of the project to identify and describe all these risks. Following this analysis a tight development program was implemented in which all elements of these risks have been addressed and solutions with alternatives were defined to meet the final date of issuance. As the example and the methodology demonstrates in detail the approach focused on an inter-company team work had allowed to contain the risks and to enable a completely new feature and its integration for the entire series within 18months.

KINEGRAM COLORS® — Security Through Enhancement

LEONHARD KURZ Stiftung & Co.
Peter Mühlfelder, Head of Business Area Security, KURZ and Managing Director OVD Kinegram AG

KINEGRAM COLORS® technology sets new benchmarks for foil security features. It is the result of adding together enhanced esthetics, enhanced appearance and enhanced design integration - while at the same time being so difficult to counterfeit that it was chosen by a major central bank as the predominant security feature of their new series of banknotes, which will be issued into circulation shortly. KINEGRAM COLORS® allows for the incorporation of different diffractive elements in different colors within one single foil element, creating a multiple-colored foil where the colors are in perfect registrer with the individual design elements. This is a milestone in the efforts at intuitive public recognition and authentication. The foil easily attracts the banknote user's attention by incorporating clearly differentiable, multiple colors, while at the same time being highly secure by use of the proprietary KINEGRAM® technology.

To maximize the opportunities offered by color, KURZ will demonstrate further options for central bank customers of how to enhance foil security features with color options and explain the broad portolio of products for all types of applications and all types of banknote substrates, with a special focus on foil solutions for window banknotes.

Avalon, the Next Step in Fluorescence

Oberthur Fiduciaire
Dr. Xavier Borde, Head of Research and Development Department and Ella Dermilly, Research and Development Engineer

Fluorescence, or phosphorescence, is the ability of some materials to emit light when exposed to an “excitation” source (usually, ultra-violet light). This property has been studied extensively by scientific researchers and is found in plenty of applications in our daily life, eg: lighting, screens… but also in more specific applications like in inks for security printing. Fluorescence, or phosphorescence, when introduced into inks gives the advantage of creating visible or invisible patterns which are easily detectable by using UV lamps, (very common and widespread authentication equipment). At the same time it is recognised that these specific inks have become more and more accessible and are now used in other fields besides security printing.

Consequently there is a real need to identify new security features of a level 2 standard which are simple to check, with small authentication equipment and which retain aesthetic and striking visual effects.

Avalon, therefore is the next step of fluorescence or how to interact with a fluorescent surface and examine the results! Our new security printing feature, presented here, is based on a special property named mechanochromic luminescence or mechanofluorochromism. This property has the following characteristic: for some fluorescent or phosphorescent compounds, to modify their luminescence properties (colour, intensity of luminescence) when a mechanical stress is applied to the ink. The reversal back to the original properties is usually obtained by heat.

By selecting the right compound and by mixing it in an appropriate printing matrix, we have created this new original, simple and efficient security feature as shown on the picture.

When “exciting” the pattern printed with Avalon under UV light, the pattern has a blue fluorescent surface. A small disturbance on its surface with a spatula, a pen, or a coin, and the fluorescence will become yellow. As the property is reversible, the yellow fluorescent color returns back to blue in more or less 15 minutes at room temperature. It can even be quicker by slightly heating the sample.

10 Years Direct Laser Engraving - Past, Present and Future

Thomas Kern, Head of Research & Development and Thomas Scholler, Production Manager

The Direct Laser Engraving (DLE®) is a well-established intaglio plate production system already installed at the Austrian Banknote Printing Company, OeBS as well as in many other printing works worldwide. In the last 10 years, major steps have been made to further improve the quality of intaglio plates on the one hand and to explore new design possibilities on the other hand.

These development milestones for enhancing the overall quality of intaglio plates will be presented: 

  • Laser technology
  • Post processing 
  • Quality control

An outlook for future process improvements, including PVD chroming contributing to the enhanced plate life, will be shared.

The use of DLE® has revolutionized intaglio printing:

  • Innovative designs and origination techniques can be integrated and implemented 
  • Easy proof printing at any step of the design process and efficient and streamlined implementation of design changes lead to higher customer’s satisfaction
  • Engraving can be shaped according to the needs and potentials of advanced intaglio inks

Turning a Sophisticated Idea into an Innovative Product

Orell Füssli Security Printing Ltd
Dr. Dieter Sauter, Managing Director

The given task from the Swiss National Bank to create, to develop and to produce a new Swiss Banknote Family was the beginning of a challenging journey. The requested functional layout and design led to the question: Are we able to transform this unique and complex artwork into mass production? Like an harmonized orchestra counting on all our valuable partners involved, we managed it! Please let us introduce you to the orchestra and their individual voices of Design, Substrate, Ink, Foil, Equipment and Security Printer. Be inspired and listen to the entire symphony composed by the Swiss National Bank.

Advances in Supercritical CO2 Cleaning of Banknotes and Results of Collaborative Testing with the Bank of Thailand

Spectra Systems Corporation
Nabil M. Lawandy, PhD, President & CEO

The presentation will discuss new hardware and process advancements in supercritical CO2 cleaning and decontamination of paper and polymer banknotes. The newest self-contained machine, capable of cleaning up to 150,000 notes in one to two hour cycles, will be described along with the results of studies on the removal of pesticides and the decontamination of bacteria and viruses. This presentation will include the results of collaborative testing with the Bank of Thailand, as well as large scale testing with $1 notes.

From Science to Confidence

Hugues Souparis, Chairman & CEO

From science to production : DID® Wave technology used on Banknote – Note combining 3D animation security features, using DID® nanostructures with ultra-thin reflective Fresnel micro-optics.

From science to more science: Dual Plasmogram: introduction of a “super-easy to check” & “heavily sciences based” visual feature for windowed notes.