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VOLUME 5 / SEPTEMBER 2018 With or Against the South African Paper Industry? to Host MDC 2020 The South African Mint has announced that the biennial Mint Directors Conference will return to in 2020. The upcoming event will mark the 31st of its kind and will be held in Cape Town and Pretoria, in April 2020. ‘The conference is a fantastic opportunity for the South African Mint to showcase its innovation and manufacturing capabilities and promote the country’, said Tumi Tsehlo, Managing Director, South African Mint. ‘The MDC 2020 will add further to our reputation as a world class producer of circulation and commemorative . It is the premier event for attracting international interest.’ The markets are tightening. Over the Here are the numbers: 74 nations issue last few years, in the course of , with a value below 50 US ‘South Africa has an impressive track more and more nations have abolished cents. 46 nations use bills worth less than record in hosting global events’, he their smallest denominations, but 5 US cents. Nine nations have banknotes added. ‘We first hosted the Mint Directors’ without at the same time raising the with a nominal value below (!) one single Conference 20 years ago, in 1998, boundary between coins and bills. US cent. and since then South Africa has built a reputation for itself as a destination for This brings to the fore a fundamental And that is only the tip of the iceberg. question: how to increase the amount global events and conferences, including Simon Lake claims that, in Africa alone, the spectacular World Cup 2010. We are of coins to be minted? By raising the between seven and 21 nations should -note boundary? Or by lobbying confident that in 2020, the minting industry replace a with a coin. In Asia, will have a similarly enjoyable experience against the decrease of cash in the number lies between 16 and 34, in general? and we look forward to showcasing the the Americas between five and 20, and in developments of our young democracy.’ On the occasion of the latest Mint Directors Europe between five and 28, depending Conference in Seoul, in April, Simon Lake on how the optimal coin-note boundary The MDC 2020 in South Africa has from the British provided hard is defined. pledged to be the most environmentally- figures, based on a study about how many friendly MDC conference yet. The Thus, the logical consequence is simple: South African Mint has appointed countries continue with the production of the central banks need to be convinced. an economically unjustifiable banknote, Reconnaissance International Ltd (RI), a But what would happen then? How global leader in conferences and for which a coin could be produced with would the banknote industry react to significantly lower lifetime costs. co-publisher of a number of banknote pressure from the coin industry? How and coin publications, to manage the The results are encouraging for all the would those mints react that have close event which will be paperless, using digital providers of high-tech coins whose structural ties to banknote production? technology at every touchpoint. security features are up to speed with Or, even more general: is the cash those of bills. If countries were to follow industry willing and able to afford a the D-Metric® model for setting the coin- dispute within its own ranks? note boundary, and all those banknotes Continued on page 4 > that should be replaced with coins actually were replaced, then there would be a lot of work for numerous mints. www.currency-news.com The ICA – a Voice for Cash, a Voice for Mints? Both during the last MDC in All of these play an important role, but the Q: What does it cost? and during the last Technical Forum ICA, by contrast, is the only organisation that A: Our membership levels are based on in Berlin, Dieter Merkle from Schuler encompasses all parts of the cash cycle and varying levels. Those organisations with an presented the International Currency all stakeholders on a global level. And the annual turnover over €10m will pay more Association (ICA), in his capacity as a ICA is the only organisation that, through its than those with an annual turnover of under Board member of this new organisation. Cash Matters advocacy campaign, seeks to €10m. Annual fees for associate members He outlined its general activities and reach out to the wider public, rather than its are €1,000. introduced its Cash Matters campaign own constituency of members. There used to be a problem for state ( ), which promotes Q: www.cashmatters.org Q: From which part of the industry are the mints to join international associations. cash as an integral part of the payment members now coming? Are there any mints Is there any possibility – such as ‘special landscape now and in future. or coin related companies among them? member’ – that could solve this problem? While all players from the banknote How many? We welcome all mints, private and state- supplier and security printing industries are A: A: The ICA is a young organisation and owned. It’s a question of whether such represented in the ICA, Schuler remains was only created two years ago, in April mints are allowed by their governments the only coin-related company involved. 2016. It has been a very exciting period to be part of a pro-cash movement. We asked the ICA Chairman, Dr Wolfram for the cash industry and the ICA has Incidentally, two of the current members – Seidemann, whether it would make sense experienced strong growth in membership Goznak and Note Printing (NPA) for mints and their supplying industry to join in a short space of time. It now has 23 – are both government-owned banknote this association. active members and 7 associate members printers (and, in the case of Goznak, minting Q: Could you summarize in three sentences and has achieved one of its primary goals as well). NPA’s CEO Malcolm McDowell is what the International Currency Association, – to become representative of the whole even a member of the ICA Board. So, state stands for? currency industry. Our members are global ownership does not preclude membership A: The International Currency Association and come from all parts of the cash cycle as far as the ICA is concerned. – from manufacturers of inks and security (ICA) brings together participants in the The ICA has two membership categories features, to substrates to manufacturers of international currency market, with the and is open to legally-incorporated hardware for notes and coins. explicit aim of supporting and promoting companies and businesses that are the role of cash within the broader payment The coin side of the industry is represented suppliers of currency, or suppliers of eco-system. so far by Schuler, but several mints have products, technologies and equipment The ICA is behind a global pro-cash expressed interest so we are hoping for used in the design, production, handling campaign, ‘Cash Matters’, communicating some of those to join too. And among the and circulation of currency. Trade or the continuing benefits of currency in associate members (ie. associations), there industry associations or other organisations a changing payments landscape and are several that deal with coins as well as and institutions such as universities, promoting cash as an integral part of banknotes, mainly on the CIT side of the foundations and NGOs can be co-opted as modern life, with all its attendant benefits industry. associate members. of reliability, security, privacy, freedom of A full list of members can be viewed on the It is worth noting that central banks choice and financial inclusion. website www.currencyassociation.org/ and issuing authorities cannot become As the efficiency of cash and the cash Search-Member-Directory.aspx members, because by law/statute they cycle is a major topic for the currency Q: I understand that you deem it to be very have to be impartial as regards payments, industry, the ICA provides its members useful for a mint to participate in the ICA. whereas the ICA’s mission is explicit in with information on standardisation and What would be the advantages? favour of cash. By definition, therefore, best practices as well as on political and A: For the ICA, cash is cash. No distinction issuers cannot be members. Whether the technical developments affecting the between fighting for banknotes or for same applies or not to mints depends on industry. The association also supplies coins. If you listen to Visa or Mastercard, the country. platforms for knowledge exchange, openly declaring a war on cash, we have Q: You developed the advocacy campaign such as expert committees and its no time for skirmishes, for talking about Cash Matters an ICA movement. Why is future conference. coins or banknotes. We have a battle on this campaign important for mints and the Q: In your mission statements you our hands, and all players in the cash cycle coin related industry? emphasise that you ensure innovation as must stand together. A: Coins are coming under attack, well as the best commercial and technical Currency systems rely on coins just as particularly in the eurozone, but practices. What is the major criterion that on banknotes. And whilst the coin and elsewhere in the world too. The ‘Cash distinguishes you from the Mint Directors banknote producers have seen each other Matters’ campaign, which was launched Conference? as competitors for a long time, in the bigger in May 2017, works to give all those a A: The MDC focuses on coins. The ICA scheme of things their interests are now the voice who see cash as an integral and takes a more holistic approach – cash same since a move away from cash will be inclusive part of the payment landscape, comprises both banknotes and coins, and damaging to both, not to mention to society now and in the future. both are essential parts of the currency as a whole . The goal of Cash Matters is twofold – to system. Along with the MDC, there are We need the mints on our side in the fight offer authoritative and accessible facts, other organisations and events that focus pro cash. figures, and news for consumers, journalists on one part or aspect of the cash cycle and industry experts alike, and to give pro- – be this banknotes or coins, technology, cash movements and petitions a platform. design, standards, digitisation, equipment, Mints and the coin industry are part of that transport etc., or which are regional. cash ‘umbrella’. Cash Matters especially has built close ties with many mints and is hugely interested in mints joining the ICA.

2 MINT NEWS QUARTERLY VOLUME 5 | SEPTEMBER 2018 International Coin Q: We all have seen the website and the spot on Youtube (www.youtube.com/ Conference in Moscow watch?v=ko0HT_pw4Zg). Which other channels do you use to spread your The 2018 COINS International Coin The organisers have developed an message? Conference and Exhibition will take interesting program of presentations, place 2-3 November in Moscow. The numismatic seminars, and room for A: Cash Matters uses a number of channels beside its website, including social media two day conference is the only one exhibitions offering the possibility to (Twitter, LinkedIn, Facebook, Instagram). of its kind in . The increasing discuss questions and issues regarding Through Cash Matters, the ICA has also number of participants in the past both the domestic and international market commissioned two white papers. The first couple of years has proven that Russia for commemorative and investment coins, one critically assessed claims that limiting has become an important coin market: the differences between countries in terms cash payments will limit criminal and several hundred delegates from more of innovations and technologies, as well as terrorist financing – ‘Keeping Cash’. The than 17 countries have attended the marketing and advertising. movement used the paper as a door opener conference in recent years. COINS 2018 offers an opportunity to in Brussels, lobbying successfully at the both get the word out about your own European Commission on shelving potential company as well as get in touch with new cash payment limitations in Europe. business partners from Russia and other We are also in the process of producing countries. The organisers, among others a second white paper – ‘Cash as a Public the Water Mark Publishing House, also Good’ – which will highlight the role of cash use this conference to acknowledge the as a complementary tool in the payments most beautiful commemorative coins in landscape, and outline recommendations the award ceremony of the international for policy makers and researchers on key contest ‘Coin Constellation’. issues and proposals for maintaining cash More information can be found at infrastructures and access. www.coinconference.com. Q: Are conferences a channel for you as well? A: The ICA is present at a significant number of global conferences with members introducing the ICA, or through panels it Confusion about organised such as ‘The Future of Payments Degussa, a big Germany-based trade These coins share the general design of the Landscape’ discussion held at the 2017 company of precious metals, announced Krugerrand, the only difference being Currency Conference in Kuala Lumpur the first-time issue of a silver 2018 a logo in the coin’s field. 2017. The ICA will also be conducting a Krugerrand via all numismatic media Letters to the editor arrived en masse global conference of its own in order to outlets, which caused general confusion. voicing customers’ fears of having fallen demonstrate innovation, maximise shared Numerous customers had already for a trick of a privately minted coin in learning and provide a cost-effective solution purchased a silver Krugerrand in 2017, 2017. The misunderstanding was resolved for the currency industry and its customers. albeit it was not a bullion coin but the South quickly, but it highlights the danger of The ICA’s first such conference will be held in African commemorative coin distributed designing collectors’ products and bullion autumn 2020. with a very high mintage of 100,000 pieces products too similarly without sufficiently to mark the anniversary of the Krugerrand. explaining the differences.

Monnaie de Paris Uses Fairmined-Certified In May, the Monnaie de Paris issued its first commemorative €50 coin using gold, which had been certified by the organization Fairmined. Fairmined describes itself on its website as ‘an assurance label that certifies gold from empowered responsible artisanal and small-scale mining organisations In May 2018 Wolfram Seidemann was elected who meet world leading standards for new chairman of the ICA. He has been CEO of G+D responsible practices.’ Currency Technology since September 2016. The gold used for this coin, which commemorates the peace following the First World War, originates from small mines in Columbia and Peru. Alfredo Gonzalez, one of the miners employed there, was invited to the first strike at the Monnaie de Paris.

MINT NEWS QUARTERLY VOLUME 5 | SEPTEMBER 2018 3 CoinsWeekly With or Against (Continued) First, a truism: coins and bills depend on The sales and privatisations of numerous Named Best one another. Without coins, there would established mints throughout Europe speak Online News Site be no bills, and bills cannot exist without for themselves. coins as the necessary change for everyday Applied to the banknote industry, this CoinsWeekly was named the Best transactions. The nowadays commonplace means that those responsible need Online Numismatic News Site by the D-Metric model by Payne and Morgan from to ask themselves if it is really a good Numismatic Literary Guild (NLG). For 1982 provides a relatively neutral basis idea for them in the long term to be several years now, the NLG has honored for calculating the optimal denomination producing overly expensive bills for small remarkable achievements in the field of structure and defining the transition point denominations. numismatic reporting. between coins and banknotes. At the moment, in this first stage, business In 2018, the competition was opened to Putting the theory into practice is where it may be booming, but as soon as the international media outlets for the first time. gets problematic because, in theory, the price-performance ratio worsens, many And for the first time, web-based and print optimal denomination structure would have central banks will start wondering about media were considered of equal value. to be recalculated on a regular basis, since their banknotes as well, and whether it is CoinsWeekly won the award at the first go. it shifts slightly every year, due to ‘healthy necessary to have that many. And at that inflation’ which is considered good for point, further questions might follow… a thriving economy. Since many central The Swedish banks have shown how a CoinsWeekl banks have not adapted their denomination systematic shortage of cash can re-educate structure for decades, cash is suffering from an entire population within a few years a reforms backlog. towards using digital means of payment. The biggest victims are currently the Thus, it is doubtful if the battle for mints. No need to start listing in how many preserving cash is a battle where one has countries the smallest denominations to choose between fighting it together with have been abolished over the last ten the paper money industry, and fighting years because the public had no desire against the paper money industry to raise to use them anymore. However, from that the coin-note boundary. process, which has been more or less the It could be beneficial for both cash Publisher: Currency Publications Ltd same in every country, we can draw an production branches to work out a guideline in association with Monea. interesting conclusion that could even apply to the banknote industry. for central banks that neutrally defines the Editor: value where a coin actually starts making In a first stage, the reforms backlog actually Dr Ursula Kampmann sense, and where a sensible boundary had positive consequences for mintage: the (left) between coins and banknotes lies. smallest denominations were not valuable Translator: enough anymore for the users to make an Maybe not only the famous D-Metric Almuth Klingner effort to bring them back into circulation. should be considered for that, but more

A large percentage of issued coins were importantly the production costs, calculated lost after a few transactions and had to be for a reasonable time period and taking into constantly replaced. Therefore, in short term, account the average yearly inflation. Mint News Quarterly™ is produced the demand for the smallest denominations A guideline jointly published by the coin every three months and only grew and provided work for the mints. and banknote industries would gain a distributed with Currency News™. But then, in a second stage, the costs lot of reputation. The first congress of 10 Windmill Business Village, for the production of those unpopular the International Currency Association in Brooklands Close, Sunbury, denominations became so high that the 2020 would be a wonderful occasion for TW16 7DY, UK central bank decided to abolish them. And establishing a working group to that aim. in doing so, many mints were hit hard. www.currency-news.com For today’s yearly turnover may be Even worse was the fact that some important. But it is even more important to ministers of finance wondered whether their build a strong basis for cash to survive. country actually needed such an expensive PUBLISHED IN ASSOCIATION WITH MONEA institution as a mint after all.

No part of this publication may be reproduced, stored in a retrieval system or translated in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the copyright holders. Germany's Success of Polymer The copyright is owned by the author. If no The German government has decided Sales Agency for Collector's Coins of the author is mentioned the copyright is with to strike another collection series of Federal Republic of Germany (VfS) to nine Dr Ursula Kampmann. polymer ring coins. They will bear a coins: three denominations in gold (€20, COPYRIGHT 2018. ALL RIGHTS RESERVED face value of €10 and will be dedicated €50 and €100), five denominations in silver Sponsors to the theme ‘Air Moves’. Issuance is (€20 each), two denominations in silver scheduled for 2019 and 2021. Germany polymer ring (€5 and €10), and two €2 thus draws on the great success of the circulating commemorative coins. €5 collectors’ coins ‘Planet Earth’ and In comparison, ten years ago, Germany ‘Climate Zones of the Earth’. distributed one denomination in gold (€100),

Maschinenfabrik GmbH This series raises the annual number of five denominations in silver (€10 each), and since 1891 collectors’ coins distributed via the Official one €2 circulating commemorative coin.

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