DNB Occasional Studies Vol.10/No.3 (2012) Designing Banknote Identity DNB Occasional Studies Hans de Heij DNB_OS_1003_Omsl_300836.indd 1 21-09-12 16:16 Central bank and prudential supervisor of financial institutions ©2012 De Nederlandsche Bank NV Author: Hans de Heij Aim of the Occasional Studies is to disseminate thinking on policy and analytical issues in areas relevant to the Bank. Views expressed are those of the individual authors and do not necessarily refl ect offi cial positions of De Nederlandsche Bank. Editorial Committee Jakob de Haan (chairman), Eelco van den Berg (secretary), Hans Brits, Pim Claassen, Maria Demertzis, Peter van Els, Jan Willem van den End, Maarten Gelderman and Bram Scholten. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopy, recording or otherwise, without the prior written permission of the Nederlandsche Bank. 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Box 98 1000 AB Amsterdam The Netherlands Internet: www.dnb.nl DNB_OS_1003_Omsl_300836.indd 2 21-09-12 16:16 Occasional Studies Vol.10/No.3 (2012) Hans de Heij Designing Banknote Identity Designing Banknote Identity Table of contents Abstract 7 1 Introduction 9 2 History of banknote design 15 2.1 Studies on banknote design and identity: an overview 15 2.2 History of paper money design 16 2.2.1 Original money 18 2.2.2 Coins 20 2.2.3 Bills of exchange 24 2.2.4 Private banknotes 26 2.2.5 State money 30 2.2.6 Currency of monetary unions 33 2.2.7 National banknotes ‘pegged to another currency’ 37 2.2.8 National banknotes ‘trust’ 39 2.2.8.1 Confidence in banknotes by portraits 42 2.2.8.2 Confidence in banknotes after 1995 48 2.2.9 Small scale private currencies 53 2.2.9.1 Electronic bookkeeping system 54 2.2.9.2 Currency unit time 55 2.2.9.3 Idealistic money 55 2.2.9.4 Regional money 56 2.2.10 Supranational banknotes 59 2.2.11 Global currencies 60 2.3 Conclusions on history 61 3 Banknote identity 63 3.1 Banknotes are part of a currency 64 3.2 Identity of currency users 66 3.2.1 Individual identity 66 3.2.2 Collective identity 68 3.2.3 Multiple identities 69 3.2.4 Caricatures of identities 72 3.3 Identity of currency issuing organisations 72 3.4 Currency design elements 75 3.4.1 Currency name 76 3.4.2 Currency symbol 77 3.4.3 Name of the central bank 83 3.5 Conclusions on banknote identity 86 4 Analysing banknote identity 87 4.1 Identity of Netherlands guilder banknotes 87 4.1.1 Dutch banknote design 87 4.1.2 Correlation between appreciation and knowledge 89 5 4.2 Identity of euro banknotes 94 4.2.1 European identity 94 4.2.2 Euro banknote identity 102 4.2.3 Measuring European identity in the Netherlands (DNB research 2011) 106 4.3 Conclusions on banknote identity 122 5 How to create identity in new banknote designs? 125 5.1 Basic banknote design policy: prioritise functions 125 5.2 New or upgrade? 127 5.3 Development of a series of banknotes 137 5.3.1 Series design 141 5.3.2 Banknote designs as part of a larger whole 145 5.3.3 Generic series design elements in private banknote series 145 5.4 Familiarity in banknote designs 146 5.5 Positioning diagrams for banknote design 150 5.6 Balance diagrams for banknote design 152 5.7 Competitive banknote design 156 5.8 Selection of banknote designer 159 5.9 Design freedom 165 5.10 Future banknote design 167 5.10.1 The future of cash 168 5.10.2 Banknotes and information technology 178 5.10.2.1 Individual designed banknotes 180 5.10.2.2 Communicating with banknotes 181 5.10.3 Engage people’s emotions in future banknote designs 187 5.11 Conclusions on how to create banknote identity 189 Acknowledgement 193 Appendices - Designing banknote identity 195 A1 - Currency design elements 197 A2 - Banknote design elements 267 A3 - Periods of Dutch banknote design 291 A4 - Monetary unions, currency boards and global currencies 299 A5 - Examples of banknote design familiarity 309 A6 - Examples of banknote positioning diagrams 315 A7 - Examples of balance diagrams for banknote design 319 A8 - Questionaire on the identity of euro currency 323 A9 - Eurosystem within European organisations 331 A10 - Visual identity of Europe 341 A11 - Examples of artists using the identity of banknotes 369 References (Chronological) 377 6 Designing Banknote Identity Abstract Confidence in banknotes is entirely based on trust in the currency, the organisation behind it and the authenticity of the note. The authenticity may be verified by an authenticity check, one of the four main user functions of a banknote; the others are value recognition, handling and (communication) message. Central banks may follow different banknote design policies, like putting ‘authenticity check’ first. In all combinations the final banknote identity is made by the ‘design sum’ of all functions. Scientific literature to support these decisions is not available and banknote identity issues are rarely discussed at conferences on banknotes. This study addresses this lack by looking into development metrics and contributing to a better understanding of identity subjects. Once the desired identity of the banknote has been described, the banknote may be designed. These two concepts, banknote identity and banknote design, are brought together in this study. Several design methods are introduced to support the development of an identity policy, like positioning and balance diagrams, familiarity and design freedom. To be perceived as a banknote, a new design has to carry several prototypical banknote design elements; the study describes 37 of such elements, divided in currency and banknote elements. Although general principles are described, the focus of the study is on the former guilder banknotes and on the euro bank notes. In 2011 De Nederlandsche Bank researched which of these design elements are contributing most to the European identity of the euro cash money. The main conclusion of the study is that euro banknotes are designed according to the status quo of national banknotes based on trust. Supranational banknotes require an appropriate, different design policy, since they are a next development stage of tangible money. Keywords Design methodology, banknote design, banknote identity, banknote communication. 7 Designing Banknote Identity 1 Introduction ‘When bankers get together for dinner, they discuss art. When artists get together for dinner, they discuss money.’ Words written down by the Irish poet Oscar Wilde (1854-1900) and still valid today. Instead of talking about art in general, central bankers could discuss more often their own banknotes as a form of art. What kind of emotions should banknotes evoke? Should they exude happiness or create a warm feeling? Which story should be told? In other words, what is the identity of the banknotes issued? The following three items are reported in the introduction of this study on banknote identity: – Aims of this study, – Topics discussed, – Contribution to existing literature. The four aims of this study Bringing the subject of banknote identity on the radar of central banks is the first aim of this study. Without an identity policy, the banknote’s message remains open and communication on the banknote may even become target of unwanted interpretations. Preparing a design instruction is the second aim of this study. How to brief the graphic designer? Reporting the achievements of the guilder banknotes in the field of banknote design policy is aim number three. Finally this study reports on research done in 2011 by DNB on the identity of the euro coins and banknotes as perceived by the Dutch. Topics discussed This study is about banknote design, which is a specific form of graphic design. Graphic design is a creative process undertaken in order to convey a specific message or messages to a targeted audience. The field as a whole is often referred to as ‘visual communication’ or ‘communication design’. Graphic design often refers to both the process by which the communication (designing) is created and the products which are generated (designs). Common uses of graphic design include identity (logos and branding), publications (magazines, newspapers and books), advertisements and product packaging. Usually the process of graphic design involves a client and a designer. And usually the design process is completed in 9 conjunction with producers of form, i.e. printers or sign-makers. In the case of banknotes the central bank is the client and the banknote designer is either an independent graphic designer or is working for the banknote printer. The study starts with a historic overview of paper money design. Over time cash money developed from original money, tokens like shells, to the first supranational banknotes, the euro. Information on banknote identity is collected from a graphic designer’s point of view and analysed. New user requirements created a demand for new types of money, keeping several carry-on elements from the previous type. The study continues with a description of banknote identity, one of the two concepts, the other is banknote design, introduced in this study. Both concepts are closely related and are often mixed up with each other and should be explained. Product identity Looking for a product to full fill their needs, consumers may choose from many different offers, created by competition between manufacturers. Consumers may select their favourite product by using preferences like functions, aesthetics, cost and sustainability.