VOLUME 18 – NO 3 / MARCH 2020 COVID-19 and Cash: Oberthur to Share a Not-so-Brave New World Anti-Viral Technology Oberthur Fiduciaire has announced that it has developed an effective anti-viral treatment to counter coronaviruses on the surface of , and that it is making the treatment available to all accredited paper makers and banknote printers. The treatment, Bioguard Enhance™, is applied within the post print varnish and as a paper treatment. It is an extension of the Bioguard™ anti-fungal and anti- bacterial technology paper treatment that is already protecting billions of banknotes in circulation. In the past few weeks, tests conducted On 11 March 2020 the World Health Both the WHO and the US Center for in an independent laboratory in the Organisation (WHO) declared COVID-19 Disease Control and Prevention state that US have shown that when Bioguard to be a pandemic. At around the same the main way that the COVID-19 spreads is Enhance is applied to a banknote time, they also managed to convey an by people-to-people contact and through in both the paper and the post print impression of cash in the context of the droplets that are produced when an varnish, a coronavirus-type virus sample virus that could have long-lasting and infected person coughs or sneezes. was effectively wiped out. damaging effects. The head of Germany’s Robert Koch In the tests the Bioguard Enhance was Institute for infectious diseases, agrees that Is cash safe to use? evaluated against coronavirus OC43, banknotes DO NOT play a significant role While the general advice from WHO about from the coronavirus family that affects in the spread of the coronavirus. The risk protecting yourself from COVID-19 is clear humans. The initial findings from the of banknotes spreading the coronavirus is (eg. wash your hand, keep your distance, laboratory showed that, under standard small ‘unless someone is using a banknote avoid touching your face etc), their advice test conditions, samples treated with to sneeze in’ says Dr Christine Tait-Burkard, about cash is not. Reports that they Bioguard Enhance showed 99.9 % of an expert in infection and immunity at advised against using physical banknotes the coronavirus OC43 were eliminated. the Roslin Institute at the University and due to the coronavirus surviving The protocol used is comparable to of Edinburgh. on these were quickly picked up by the the ASTM E1053-97 – Standard Test media and themselves went ‘viral’. The US Center for Disease Control said, Method for Efficacy of Virucidal Agents WHO subsequently issued a statement ‘it may be possible that a person can get Intended for Inanimate Surfaces. COVID-19 by touching a surface or object saying that they have not advocated The science behind this discovery that has the virus on it and then touching avoiding cash (‘we did NOT say that cash results from Oberthur Fiduciaire’s long their own mouth, nose, or possibly their was transmitting COVID-19’), but rather term collaboration with the USA- eyes, but this is not thought to be the main suggested that contactless payments may based laboratory Biological Consulting way the virus spreads.’ be ‘a good idea’, and the risk posed by Services (BCS). BCS has for many handling a banknote is no greater than Continued on page 6 > years been one of the leading experts in touching any other common surface. Even the field of pathogen analysis. so, the original story has done its damage. Continued on page 6 > www.-news.com COVID-19 – Truth and Lies ‘A lie gets halfway around the world And it is so frustrating. The damage of After all, it not an unreasonable assumption before the truth has a chance to get its the World Health Organisation (WHO) that people would withdraw large amounts pants on.’ announcement linking cash to the spread to hoard, as they tend to do in times of The above quotation is attributed to the of COVID-19 is well and truly done. Central crisis (albeit that the real story of hoarding in legendary British war-time Prime Minister banks have been slow to respond and this crisis is toilet rolls, not banknotes. Who Winston Churchill. While the context is have given mixed messages about the could have seen that coming?) unknown, it is a perfect metaphor for safety of cash (why quarantine it if it is so But for all the central banks that have the situation today vis-à-vis perceptions safe?). At the same time the commercial sought to reassure the public about cash, of cash. payment sector has promoted contactless there are as many that are encouraging payments as safer for retail staff and the them to use alternatives. They include the public. The net effect is a significant decline central banks of India, Kenya, Portugal, in cash withdrawals. Only time will tell if the UAE, Estonia, , to name Inside this Issue reduction is temporary. a few. It is not coincidence that some 1 COVID-19 and Cash: a Not- In early March, a variety of stories appeared of these are active proponents of digital so-Brave New World in the media which quoted a WHO anyway. Could their stance be spokesman saying ‘we know that money opportunistic? 1 Oberthur to Share Anti- changes hands frequently and can pick up Central banks, and cash, don’t work in Viral Technology all sorts of bacteria and viruses.’ He went isolation of course. The pandemic has also 2 COVID-19 – Truth and Lies on to say that ‘when possible it would be seen change in the payments sector which advisable to use contactless payments to has sought to increase the use of non- 3 End of Euro 1 and 2 Cent reduce the risk of transmission.’ cash payments. Coins on the Horizon This was followed up by a statement in A number of countries, such as the the ‘myth busters’ section of the WHO 3 People in the News Netherlands, UK, Saudi Arabia and Egypt, website that said ‘the risk of being infected have raised the payment limit for spending 4 A Mixed Bag from the with the new coronavirus by touching using contactless cards. M-Pesa has Latest Round of Company coins, banknotes or credit cards and waived its fees to discourage cash usage. Results other objects, is very low.’ WHO did not The Allied Irish Bank reversed a decision leave that post up but has confirmed to charge a fee for contactless payments 5 News in Brief subsequently that it did not say cash was using mobile devices. Ant Financial has spreading COVID-19. By then, however, the 7 The Stars of Aruba opened Alipay to third parties to encourage story had taken on a life of its own with the its use. An increasing number of financial 8 Cash Industry Shares media, and social media, in full cry. Words institutions have decided to reduce the Crash matter and here is a great example of that. number of branches open to the public. 10 The response by the cash community has A number of retail outlets, before their The Science Behind been pretty much the same as that of the shutdown, moved to only allowing non- Bioguard Enhance international community to the emergence cash payments methods. 11 Windows of Opportunity of COVID-19 – ie. unprepared, fragmented Even before social distancing became from KURZ and slow. policy, the net effect of COVID-19 and That said, many central banks have now these changes has been a huge reduction 11 EyeQ – Truth is in the Eye entered the debate, using – as noted on in the use of cash. In a matter of just days of the Beholder page 1 – science and logic to make clear in mid March in the UK, for example, cash 12 Physical to Digital: statements that banknotes are low risk usage halved. a Revolution in Document when it comes to spreading COVID-19. This is not just down to public fears about Security At the same time as saying cash is cash and retailer insistence on cards safe to use, some central banks are being used. It is also down to so much of 12 HSP EMEA – Success in also publicising what they are doing to our daily life now having to be conducted the Sun Despite Gathering safeguard banknotes against spreading online, and to the lockdowns that mean Storm Clouds COVID-19 (hence the comment above people simply can’t spend so much. about mixed messages). 13 Three Winners of Regional And while cash may be one casualty, other Another central bank response has payment means are being affected too, with Banknote Awards in been to reassure the public that there McKinsey claiming that both Mastercard Lisbon is sufficient cash in the system to meet and Visa have been hit by a 25% decline 13 Cash Innovation Comes to any requirements. This is supported by in transactions. Prague with WBS 2020 reports from several suppliers that tenders Even so, it is too pessimistic to suggest that and orders are being brought forward – the changes that the pandemic is forcing 14 Some Progress but More to presumably not only to inject more fresh on our payment choices will become Do for Gender Diversity in notes into the system to replace worn permanent once the pandemic is over? Currency notes, but as a contingency. 15 Note and News

2 CURRENCY NEWS | COMMENT End of Euro 1 and 2 Cent People in Coins on the Horizon the News The Central Bank of Curaçao and Sint Maarten has nominated Richard Doornbosch to take over as Governor later this year. He currently serves as Finance Minister and, if approved, will replace Jerry Hasselmeyer, who stepped down in 2017. The position has been vacant since then.

Diego Labat has been appointed interim President of the Central Bank of Uruguay pending a permanent replacement, following the retirement of Alberto Graña. The European Commission (EC) is The average purchasing power of the 1 considering a proposal to phase out 1 cent coin in 2019 was 80% of that in 2002. Evaldas Stralkus has been appointed and 2 euro cent coins in a move that And yet the issue of 1 and 2 cent coins the new CEO of the Lithuanian Mint. could save up to €1.4 billion a year in is increasing faster than any of the other production and transportation costs. denominations. In 2002, 14 billion 1 and 2 The measure is included in the EU cent coins were in circulation out of a total executive’s working programme for this of 40 billion, ie. 35%. By 2017, 61 billion of year, released at the end of January and the coins were in circulation out of a total of scheduled for the October-December 126 billion, ie. 48%. period after an evaluation of the use of the Seigniorage is also an issue. Production two smallest euro denominations. costs in particular vary throughout the Rounding rules would be applied as a first eurozone, but there is a presumption that step before any withdrawal. Among the 19 the 1 cent at least has resulted in negative eurozone states, these rules are already seigniorage since 2010. With production used in the Netherlands, Finland, Ireland, costs routinely 50% higher than the face Belgium and Italy. value, the annual loss of seigniorage is estimated at €16 million. With the cost of the 1 and in some cases 2 cent coins mostly exceeding their face value The disappearance of the coins would (although these costs depend on where be unlikely to be missed in the eurozone. they are minted), their future has been In a Eurobarometer poll in 2018, 64% of the public were in favour of abolishing the under discussion for some time. Jutta Buyse. coins and rounding prices up and down (up The EC published a report in 2018 from 60% in 2014), albeit that there were giving four scenarios – (1) to maintain Jutta Buyse has been appointed regional variations. Finland was most in the status quo (ie. do nothing); (2) to Director General of the International favour, at 86% (not surprisingly, since they continue issuance but at a reduced cost Currency Associatoin (ICA), replacing decided to do without the two coins from (ie. changing to a cheaper composition); Dr Susanne Maise who has stepped the outset). Lithuanians were the least in (3) to ‘fade out’ the coins (whereby they down. She brings 18 years of favour, at 45%. would remain legal tender, but progressively experience in working with Brussels- disappear from circulation); and (4) to go As above, five countries in the eurozone based associations and public affairs for a quick withdrawal. The third option is have already stopped producing and consultancies, as well conference the one that appears likely to be adopted, issuing the coins (Finland and the management. Most recently, she although the EC’s Vice President Maroš Netherlands first, then Belgium, and more was Deputy Secretary General at the Šefčovič has stated that no final decision recently Ireland and Italy), albeit that they European Lotteries Association, where has yet been taken. are still legal tender in those countries. she has executed advocacy campaigns France is reported to be also invoking to position the sector in various EU Dr Rüdiger Voss of the European mandatory rounding, regardless of the policy dossiers. Commission’s Directorate General EC’s decision. of Economic and Financial Affairs According to Dr Wolfram Seidemann, (ECOFIN) has presented on the low value Germany, on the other hand is understood Chairman of the ICA Board, ‘the role denominations at the past two Coin to be resisting the withdrawal of the coins of the ICA as the association of the Conferences, providing figures that put the due to their heavy use in circulation and currency industry will continue to grow. EC’s deliberations into context. because such a move would prevent the In Jutta Buyse, who brings strong fractional pricing so favoured by retailers. association and advocacy experience, The net issue of euro coins between 2002 Germany uses more cash than any other we found the right person to lead the – ie. the year the euro was introduced – eurozone country, but its resistance may further growth and development of the and 2019 is 132.9 billion with a value of also be due to the fact that it is home to ICA, with a strong focus on advocacy €29. 4 billion, equating to 396 coins per five mints. Estonia is also resisting the idea, and outreach.’ eurozone inhabitant. having recently increased the number of these coins in circulation.

VOLUME 18 – NO 3 | MARCH 2020 3 A Mixed Bag from the Latest Round of Company Results Last month we reported the published came from new products, these having now Revenue for the year fell slightly from results of a number of industry leaders achieved a 42% year-on-year sales growth. €1.22 billion to €1.21 billion, but costs also in cash, including Loomis, Brinks’, The division’s profit margin improved by increased, resulting in gross profit falling by Diebold Nixdorf, NCR and Crane Co. 13.7% to 16.9% in 2019. 12% to €312.9 million. Profit before interest This month it is the turn of Spectra G4S demerges cash business and taxes (EBIT) was also lower at €56 Systems, Prosegur, G4S and Koenig & million compared with €87.4 million in 2018. G4S produces two sets of results, the Bauer, all the figures for which represent Net profit at €38.4 million was 30.5% lower Statutory Results and Underlying Results, operations in 2019 – ie. before the than in the previous year. claiming the latter, presented at constant impact of COVID-19. exchange rates other than the operating The revenue share from banknote and An update on the performance of the listed cash flow, provide a better indication of security printing of €463.9 million was companies in our sector post the COVID-19 the performance of the group’s on-going 5.6% lower than in 2018, which had been outbreak can found on pages 7-8 in this business for the year. For brevity we use boosted by a major order. The order intake month’s Industry Watch. those results here. was also 19.5% lower at €406.7 million than the previous year. Operating profit fell Record year for Spectra Revenue in 2019 at £7.67 billion was by 8.9% to €43.9 million. The division has Spectra Systems Corporation reported 4.7% higher than in 2018 and the adjusted an order backlog of €287.3 million. another year of growth. Revenue of $13.23 operating profit (PBITA) at £501 million million was 5.9% higher than the previous remained the same. The operating margin The company has in place a Performance year, the increase being largely due to early- in 2019 was 0.3% lower at 6.5%. Net profit 2024 Efficiency Programme with the stage research funding for future sensor for 2019 was £263 million compared with intention of reducing costs by €70 million technology development for a G7 central £261 million in 2018. by 2024, improving operating margins, and reducing working capital through lower bank and equipment sales to a major The most notable feature of 2019 was inventories and receivables in security banknote printer. the demerger preparations for the Cash printing, as well as other initiatives. Adjusted EBITDA (before stock Solutions business which culminated, on 26 compensation expenses) increased by 8% February this year, in the sale of the majority In the guidance for 2020 the company to $5.5 million, representing an operating of the conventional side of the business stated that, even before the coronavirus, margin of 41.54%. Net income for the year to the Brink’s Company, the Board having the global economic conditions were increased by 7% to $4.3 million, a net profit determined that this sale was superior to demanding, and with the pandemic margin of 32.75%. the demerger and in the best interests of situation now worsening, the company could not be sure of its performance. Most of the company’s sales and profit are shareholders. 35% of this business is being Managing the possible consequences derived from the Authentication Systems retained, including the company’s cash of the pandemic is now the company’s business, which generated revenue of operations in the UK. Together, the retained top priority, with a professional project $11.83 million, and achieved an adjusted businesses had sales of £297 million in organisation already established. EBITDA of $5.06 million, a 9.5% increase 2019 and PBITA of £27 million. The sale will over the previous year. see the transfer of c. 25,000 employees to Update from De La Rue Brinks, and a reduction of £15-20 million Sound performance from Prosegur De La Rue won’t be announcing its results per year in overheads for G4S. for 2019/20 until May, but issued a trading Prosegur's revenue in 2019 was €4.2 According to G4S, the disposal of these update at the close of the financial year billion, a 6.6% increase over the previous capital-intensive businesses will enable in which it states that it still expects an year, and it achieved an operating profit G4S to focus on the growth of other adjusted operating profit of between £20- (EBITDA) of €536 million compared with aspects of the business. These include its 25 million, as previously guided. €456 million in 2018, an increase of 17.6%. rapidly growing Retail Technology Solutions Its operating margin increased from11.6% The group has operated within its banking business, which includes Cash360, to 12.8%. covenants for FY 2019/20. Net debt is Deposita and G4SPay – all described estimated to be £105 million, down from Operating profit, excluding depreciation as industry-leading solutions which the £170 million recorded in September. (EBITA), was €358 million, an increase of transform customers’ payment and cash De La Rue is progressing with its 9.7%, and profit before interest and tax management processes. This business Turnaround Plan, preliminary details of (EBIT) was up 9.7% at €330 million. Net grew by 18% in 2019 and is expected to which were announced at the end of profit at €160 million was 11% lower than continue growing strongly, at 14-16% per February and which include an accelerated in 2018. annum and generate margins of c.15%. cost-cutting programme combined with Revenue in Latin America increased by The operations of Retail Technology and the a sharper focus on its core businesses of 2.2% to €2.08 billion (but by 19.7% in local retained cash business will account for 8% currency and authentication. currency). Revenue in Europe increased by of group turnover going forward. 1.7% to €1.77 billion and in the rest of the Uncertain outlook for world by 116% to €342 million. Koenig & Bauer Prosegur Cash is one of three divisions, Koenig and Bauer is the parent company accounting for €1.8 billion in sales (up of KBA-NotaSys, which has recently nearly 4%) – 42.85% of the total sales been renamed Koenig and Bauer revenue. In local currency the sales growth Banknote Solutions. was approximately 17% of which 16.2%

4 CURRENCY NEWS | COMPANY NEWS News in Brief Nepal Halts Security ‘Automatia offers us know-how and A spokeswoman for the Royal Mint said it experience in operating ATM services and had received requests from health trusts Printing Press Tender digital payment systems. This is a great and hospitals across the UK since news The Public Accounts Committee (PAC) opportunity for us to expand our ATM of its medical visors was announced. ‘We of the Nepalese Parliament has directed outsourcing services. As its new owner, have increased production as a result to the government to halt the process of Loomis will continue to develop Automatia's help as many as possible,’ she added, setting up a new security printing facility in businesses and will use Automatia's know- explaining it should be fairly straightforward the country. how and payment platform internationally,’ for other engineers to produce its visors. In the view of the PAC, the previous said Patrik Andersson, President and CEO ‘We are already a fast-moving consumer process to procure the new facility was ‘full of Loomis. goods (FMCG) manufacturer so a lot of the of irregularities’ and it has recommended Under the terms of the transaction, the techniques could be easily transferred.’ that it be scrapped and replaced with selling banks will commit to long-term a new global competitive tender. It has agreements to be serviced by Automatia. Finland Maintains Coin also directed the Commission for the The transaction is subject to merger control Production for Denmark Investigation of Abuse of Authority to approval by the Finnish Competition and Coins in Denmark will continue to be investigate the irregularities rife in the Consumer Authority and approval by other minted by the Mint of Finland until 2025, procurement process. These include relevant authorities. Closing will take place following the renewal of its contract with the reports that a government minister resigned after approval, which is estimated to take Danish central bank. Last year, Danmarks from his post after he was heard in a leaked around five months. Nationalbank launched a tender as its audiotape seeking a ‘commission’ from a existing agreement with the Mint of Finland potential supplier. Note Issuer to is due to expire this May. The Bank started Two European companies – from France Change Name outsourcing its coin requirements when it and Germany respectively (neither being The Royal Bank of Scotland (RBS), one of closed its mint in 2016, and the first three the afore-mentioned potential supplier Scotland’s three note-issuing banks, is to year contact was award to Mint of Finland in the leaked tape) – submitted bids last change its name to NatWest, the subsidiary in 2017. year to build the facility, but neither was which represents 80% of its customer base. The Bank tendered for the four year followed through on the basis of cost, with production contract, to take effect from calls for global bids instead, rather than the According to RBS, the move is designed 2021, via an EU open procedure and says previous so-called G2G (government-to- to align the group name with the brand that the Mint was chosen for providing government) process. under which the majority of its business is delivered. But cynics see it as an attempt the best offer overall. The award criteria The government’s plans involve an in- to shake of its toxic past and the financial included not just price, but also quality, country security printing facility so that crisis of 2008, when it was rescued with security and CSR. it can produce its own , ID £45 billion of taxpayers' money following documents and, potentially, banknotes as years of disastrous mismanagement Cash Management in well, with the aim of becoming self-sufficient in five years. It is presumed that the change will not, Mozambique however, affect RBS banknotes, as the The Bank of Mozambique and the country’s Loomis Expands in press release announcing the name change credit and financial institutions have signed explicitly states that ‘customers will see an MOU to share the responsibility of Scandinavia no change to products or services as a managing cash in circulation, both notes At the start of this year Loomis announced result of this change and will continue to be and coins. the acquisition of the Swedish arm of the served through the brands they recognise According to the Governor, Rogério Norwegian cash management company today, including NatWest and Royal Bank Zandamela, the MOU will help to Nokas. It has since announced that it is of Scotland’. ‘promote greater efficiency, to ensure that acquiring 100% of the Finnish ATM operator the selection, counting, transport and Automatia Pankkiautomaatit Oy (Automatia) distribution of metical banknotes and coins from the present owners Danske Bank, Royal Mint Steps up to are properly conducted and at low cost.’ Nordea, and OP Financial Group. Help Health Workers The Royal Mint is set to produce thousands The appropriate standards and division of Automatia, established in 1994 as a joint of medical visors to protect health workers responsibility between the Bank and the venture of Finland’s main commercial on the frontline of the coronavirus outbreak. financial institutions will be issued ‘soon’. banks, operates the largest ATM network But the Bank will retain responsibility for in the country under the Otto brand. The While the organisation typically produces ensuring the integrity of notes and coins in business also provides nationwide cash coins, its engineers are to manufacture up circulation, monitoring their level of quality, supply services for bank branches and night to 4,000 of the visors a day. The engineers as well as educating the public on issues of safes for retailers. In addition, it operates decided to produce these after searching their handling. Siirto, an open multi-bank digital platform online to see what medical equipment could for real-time mobile payment services. be easily created on its site. After settling on The financial institutions, meanwhile, will be the visors, their high specification prototype responsible for checking the authenticity of Automatia employs around 30 people and was approved in two days. The Royal Mint cash to protect themselves from losses due manages around 1,500 ATMs, which is says it will post the exact specification for to counterfeiting or forgery, and ensuring more than 95% of the total ATM numbers its design online so that other engineers that banknotes and coins in circulation are in Finland. Its 2019 annual revenue was can replicate it. genuine and of good quality. around €42 million. The enterprise value, ie. purchase price plus acquired net debt, is also approximately €42 million.

CURRENCY NEWS | COMPANY NEWS NEWS IN BRIEF | VOLUME 18 – NO 3 | MARCH 2020 5 Anti-Viral Paper COVID-19 and Cash (Continued) (Continued) There is a lot of research into how the Some banks have focused on removing BCS is accredited by ANSI National COVID-19 virus survives on different more notes from circulation and putting Accreditation Board (ANAB), the largest surfaces, but it’s not just cash payments into circulation only new ones, others such accreditation body in North America that potentially carry a risk. Using PIN as the Federal Reserve are quarantining and also by the National Environmental keypads for card payments might be an repatriated banknotes. Laboratory Accreditation Program even more direct way of transmitting the The logic behind central bank decisions (NELAP). The Bioguard technology virus. As is touching frequently handled to disinfect banknotes, only issue new platform, from which Bioguard Enhance objects such as door handles, petrol pump notes or move to more wipeable polymer has been developed, has already been handles, shopping trolleys, handrails, water or varnished banknotes, is a concern over certified under ISO 10993 in France and taps and light switches. how long any virus will stay on a banknote. in the USA by Biomatech, a NAMSA What are central banks saying? Stephanie Brickman from the WHO said, (North American Science Associates) A number of central banks have made clear ‘we do not know (how long the virus lasts member company. statements that banknotes are low risk on banknotes), but we estimate not longer Bioguard Enhance has the major when it comes to spreading COVID-19. than two hours. The virus will not survive for advantage that it can be added to an The Executive Board Member of the very long on surfaces, particularly on a dry existing series of banknotes without any Bundesbank, Johannes Beermann, said on surface like a banknote.’ impact on the visual appearance of the 18th March, ‘…the probability of becoming De La Rue research during the H5N1 flu banknotes, security features or machine ill from handling cash is smaller than from in 2006 suggested that as little as 10 % of readability. many other objects used in everyday life’. COVID-19es (with feline COVID-19’s being According to Oberthur Fiduciaire, the In the same press briefing, René specifically tested) were still present after anti-viral properties of Bioguard Enhance Gottschalk, infectiologist and head of four hours. This research concluded that have no effect on the banknote’s the Frankfurt am Main Health Office, overnight storage was likely to be adequate physical properties, are unaffected by explained that what is decisive is whether to ensure that the virus was no longer lithographic and intaglio printing and by there is an infection channel. ‘COVID-19 present. Other studies, that are relevant washing and maintain their effectiveness is mainly spread by infected droplets but not directly translatable to banknotes, in artificial ageing tests. From a health transmitted by coughing, sneezing or suggest between hours and days. and safety perspective, the treatment also talking.’ He did not regard banknotes Can the industry help? does not result in any additional irritation as providing an infection channel since As described elsewhere in this issue, or sensitisation. the physical properties mean banknotes Oberthur Fiduciaire have brought out a Oberthur Fiduciaire is making Bioguard do not particularly lend themselves to new anti-viral substrate, Bioguard Enhance. Enhance available to all accredited transmitting pathogens. There are claims of other substrates out banknote paper makers and banknote The Bank of Canada and the Bank of there too – from Goznak and Intace for printers as part of its commitment England have made statements that almost example, while Inovink is about to launch an to assist the world’s fightback used the same words, saying the risk of anti-microbial additive for banknote varnish against COVID-19. getting COVID-19, ‘…by handling a polymer and substrates called BioNote®. Oberthur Fiduciaire will also provide note is no greater than touching any other Whether or not there is a need for such technical support to all manufacturers common surface, such as handrails, substrates given the lack of evidence and who wish to use this anti-viral solution doorknobs or credit cards.’ consensus that viruses survive for any for the first time. A number of paper mills The Banque de France has said there significant length of time on banknotes is have already had experience of adding is ‘no evidence that the COVID-19 was beside the point; the ability to address such the Bioguard family of products to or could be spread by banknotes.’ The concerns, legitimate or otherwise, with a paper – Louisenthal in Germany, Crane Oesterreichische Nationalbank, Reserve tailor-made solution could be key to helping in Sweden, FNMT in Spain, Portals Bank of and the South African regain trust in banknotes. in UK and VHP Security Paper in the Reserve Bank are among several others A detailed analysis of the various industry Netherlands. In this time of crisis, says that have also made similar statements. technique and products to help fight Oberthur Fiduciaire, it has built on its well COVID-19, or fears of COVID-19, will be the proven Bioguard technology to develop How are central banks treating topic of a special report to be distributed an effective anti-viral treatment for banknotes? with the next issue of Currency News. banknotes. This solution can be applied At the same time as saying cash is safe to all new banknote orders and Oberthur to use, some central banks have also Fiduciaire has committed to work with publicised what they are doing to safeguard all accredited industry suppliers to banknotes against spreading COVID-19. ensure that every central bank in the The People’s Bank of China (PBOC) world has access to this significant has taken a number of steps such as new technology. quarantining of returned banknotes before Please contact G Tillon of Oberthur reissuing them, increasing the issue of Fiduciaire, for further details new notes and disinfecting areas where cash is handled, and these have been at [email protected] implemented elsewhere (for example, Costa (An interview with Henri Rosset, Rica, Indonesia, Iran, Russia, South Korea developer of Bioguard Enhance, can be and Thailand). found on page 10).

6 CURRENCY NEWS | COVID-19 The Stars of Aruba – Issuing Banknotes with Humour and Public Interaction Lat year, the Centrale Bank van Aruba Q: What was the reason for issuing the new It had to be proven technology, and (CBA) introduced a new banknote series in the first place? MOTION SURFACE is in our view the best series, its first in 16 years – a decision A: Throughout the years, the CBA had available banknote security technology. that was not taken lightly given the done a number of updates of the old It has the highest quality and is the most popularity of the existing series in series but came to a point when it was too effective feature on the market. this small but beautiful island in the cumbersome. The old banknotes had fallen Q: And what about the themes and southern Caribbean. But after intense out of step with the functional and security designs themselves? preparations with many stakeholders needs of modern banknotes. They were The new series is very modern, beautiful and the decisions to also include A: also quickly soiled, especially the highly and colorful. I have shown the new humour in the public awareness circulated 10 florin note, and contained a lot banknotes to international friends and they campaigns, the 120,000 residents of white areas which attracted dirt. like them – so much so that they want to of Aruba now have one of the most Another tipping point was the emergence of take them back home with them. innovative and modern banknote series counterfeited banknotes. Not many, but the in the world. And ones they appear The public can now explore the 10, 25, central bank’s strategy is to communicate to like as much, if not more, than the 50, 100 and 200 florin banknotes in a new immediately any counterfeits to the public. previous notes. vertical format – each with beautiful artistic We then set the goals for the new series elements from the Aruban culture, flora and already from the start. It had to be modern, fauna. These are in combination with the use the best security features available most secure banknote features available, to prevent counterfeits, convey a clear such as high-relief printing, colour-changing message to the public, and be a full ink, MOTION SURFACE and 3D moving family of new notes. And not the least be stripes with miniaturized micro-optics from sustainable over time – we didn’t want to Crane Currency, which also printed the start all over again for the next ten years. new series. We launched the new series on 17 May People appreciate that they can discover 2019, and made it available to the public on new elements of the banknotes almost 3 June. Five new banknotes, of which one every day. On each note, there’s a has a new denomination, were issued after combination of different elements, vibrant what were years of intensive preparations colors and messages about nature and close cooperation with various local conservation that fuel curiosity. stakeholders, including the commercial Q: How did you implement the public banks, as well as international suppliers education campaign? of banknote paper, security features Jeanette Semeleer, centre, at the launch of Aruba's We had years of preparations before and equipment. A: new banknote series. successfully launching the new series, Q: How did you go about deciding on the allowing sufficient time for including as Currency News™ spoke to Jeanette design and security features? many parts of the society as possible Semeleer, President of the CBA, about When the decision was taken to work in this important project. And since the the motivation behind the new series and A: with local Aruban artists, the CBA attended co-circulation time was only two months, how the public were converted to their numerous conferences and company visits we implemented an inclusive information new notes. to find the best designers, printers, and campaign to ensure that all members of the Q: First of all, can you give some headline other external experts. A lot of travel and Aruban community were immediately aware comments about the new series, and the hard work had to be done before choosing of the new series and its unique design and factors behind it? the right suppliers. features, and the story behind them. A: The new series was hatched several You have to go out at least four years in The public information and education years ago – to make people proud of their advance and attend all conferences, listen involved printed material and instructional country and to show the world the rich life to presentations, walk with the experts, feel movies via various channels such as of Aruba. the products, conduct on-site visits and TV, radio, social media and the central But replacing a complete banknote series review advanced security features. bank’s website. was not an easy task. The CBA decided For a small central bank as the CBA, it is As an addition, the CBA held information early on to take on the whole experience crucial to balance the need for efficient sessions in various community locations of creating a family of banknotes by anti-counterfeit technology with cost. We and schools and presented a ‘Treasure themselves – albeit together with a network selected Crane Currency’s micro-optic Box’ to communicate the new banknote of local partners and international experts security feature MOTION SURFACE® for the series to a younger audience. Using an and advisors. complete series of banknotes – a decision analogue game in an otherwise digital world We are all very pleased with the result, that wasn’t taken lightly as it was a first. If was a strategic move to encourage pupils but the project was huge and we you want to be open-minded you have to to practice mathematics by managing cash. underestimated the magnitude of the work take some risk, but we didn’t want to be a Continued on page 9 > needed to be done. It took about seven pure test case for new banknote security years to accomplish everything, including features either. the legislative process as approval of the Parliament was necessary to change the relevant law, which also put an extra burden on the staff.

CURRENCY NEWS | COVID-19 ON THE RECORD | VOLUME 18 – NO 3 | MARCH 2020 7 Cash Industry Shares Crash For most of last year there was talk of In the period since last December (ie. Crane Co’s share price fell by 42.5% in a market downturn. Some believed that the last Industry Watch), every market in the period, reducing its market value from many companies, and in turn markets, the world has fallen in value. In the USA $4.95 billion to $2.91 billion. In the period it were over-valued. But although there the Dow Jones has fallen 28% and the underperformed its market by 20% and in were brief dips, the general downturn NASDAQ 13%. In Asia, the Nikkei has the full year by 24%. never materialised. fallen 19%, the Hang Seng 17.5% and the Currency products accounted for 35.3% Indeed the markets not only bucked a Shanghai Composite 8%. In Europe the FT of revenue in 2019 (see CN February downturn, most recorded gains in the All Share Index has fallen 29%, the FT 100 2020) and although, this represented a year, enabling our industry to end 2019 in 28%, the SMI 15.5 %, the CAC 28%, the fall of 7.9%, its operating profit only fell reasonably confident mood. No one saw DAX 28% and the FT Eurofirst 350 17.7%. by 4.7% to $177.3 million, representing the current storm coming. The modern Whilst the losses in the world’s markets are 38.7% of Crane Co’s operating profit (prior world has never experienced anything quite shocking, they are not nearly as substantial to asbestos and environmental provisions like this highly infectious disease, and we as some of those incurred by the totalling $248 million). These provisions are only currently in its early stages. companies in our sector which, with one seemingly had no impact on the market Bill Gates forecast a pandemic two years or two exceptions, have fared considerably as the share price held firm until mid ago and others have sounded warnings, worse than their respective markets. February, but then, along with other shares but in the period of austerity following the on the Dow Jones Exchange, it began to Substrates and banknotes fall steeply. financial crash of 2008, virtually no country De La Rue’s share price fell by 54.3% in or organisation heeded the warnings and the period, reducing its market value from Orell Füssli’s share price fell from CHF 98 prepared for it. The effect on daily life needs £219.7 million to £59.4 million. As a result, to CHF 93.5 in the period, a 4.6% fall that no further description, except to say that it underperformed its market by 30% and reduced its market value to CHF 183.5 that communities, regions and countries in the 12 months has underperformed million. However, it was the only company are in lockdown and their economies in a by 66%. in the industry to outperform its market in state of suspension at the best, meltdown the period with a 10% gain; in the full year it Some of this fall reflects the changes that at the worst. was level with its market. have been taking place in the company’s All global equity markets have lost value business activities and in management in Spectra Systems Corp’s share price fell as many companies have been forced the last nine months and its unimpressive by 22.8% in the period, reducing its market to reduce output or close their doors, interim results last autumn. Even though value from £64.56 million to £50 million, but either temporarily or permanently. Many DLR issued a turnaround and trading it only underperformed its market by 2%; governments have pledged eye-watering update at the end of February, with its in the full year it outperformed its market amounts of financial support, which will share price at 140p, this continued falling by 12.5%. have to be recovered once the pandemic until it reached a low point of 47p on 23 This strong performance compared with is over. Even so, millions will be thrown out March. It has since recovered somewhat others in the industry may well be due to of work and there will consequently be a and ended the period at 57.3p. its releasing good results for 2019 and a long haul out of recession. Investors are strong forward outlook (see page 4). anticipating this. Continued on page 9 >

Company Performances – March 2020 % Change Versus % Share Price % Change Versus Market – Last Current Change – Market – Last 12 months to Company Share Price Market Cap Dec-March 2020 3 months Dec 2019 De La Rue 57.1p £59.4m -54.3% -30% -66% Crane Co $49.22 $2.91b -42.5% -20% -24% Orell Füssli CHF 93.5 CHF 183.5m -4.6% +10% 0% Spectra Systems 110p £50m -22.8% -2% +12.5% Brinks $51.4 $2.58b -44.5% -19% -16.5% G4S 92.5p £1.44 b -57.1% -30% -35% Loomis SEK 191 SEK14.4b -53.1% -26.5% -25% Prosegur €2.33 €1.4b -37.9% -13.5% -37% Diebold Nixdorf $3.85 $298m -61.5% -40% -48.5% NCR $18.26 $2.36b – 47% -23.8% -16% Glory ¥2560 ¥1629b -23.8% -4% +3%

8 CURRENCY NEWS | INDUSTRY WATCH The Stars of CIT companies hit hard NCR’s results for 2019 also provided Aruba (Continued) In the last Industry Watch we reported a confidence for 2020. But as with others, strong performance for two of the four CIT NCR’s market value fell by 47% in the Q: Given that the population was companies (for the other two, see page period, reducing its market value by perfectly happy with the existing notes, 4). Today their outlook and situation is $1.99 billion to $2.36 billion. It also what were the messages you used to very different. underperformed its market by 23.8% and in convert them to the new one? the 12 months by 16%. Brinks’ share price fell by 44.5% in A: We had to present a better product the period, reducing its market value Glory also fell in the market downturn, but that the public could fall in love with – from $4.64 billion to $2.54 billion. Its fall to a lesser degree than its US competitors. and we succeeded. The reactions since exceeded its market by 19% and in the full In the period its market value fell by 23.8% the launch have been very positive. from ¥213.82 billion to ¥162.91 billion, and year it underperformed by 16.5%. We did this by taking the decision to although in the period it underperformed G4S’s share price fell by 57.1% in the step away from being perceived as a its market by 4%, in the full year it period, reducing its market value from dull central bank. To generate attention outperformed by 3%. £3.35 billion to £1.44 billion. It also before the launch, the CBA adopted underperformed its market in the period by Conclusion a humoristic teaser campaign titled 30% and in the year by 35%. The link between the disproportionate fall the ‘Stars of Aruba’. It was created G4S announced the sale of most of of its in value of companies in our sector and together with Crane Currency and its cash business in February to Brinks for the new front that has opened up in the communication partners in Sweden £600 million, but this was announced some war against cash thanks to the arrival of and leveraged the island’s vibrant social time after its share price had begun to fall, COVID-19 is inescapable. media channels, in particular Facebook along with the market. Its recent results The World Health Organisation (WHO) has and Instagram. The peculiarity and (see page 4) did not halt its fall in value. a lot to answer for in this, having issued a uniqueness of some indigenous animals, also key elements of the Loomis released impressive results for statement saying that the coronavirus was previous series, were maintained but 2019 (see last month’s CN), but in the carried on banknotes and that people could updated for the new banknotes. period its market value still declined by a become infected this way. The story spread very substantial 53% to SEK 14.4 billion rapidly and although the WHO retracted its You have to make people curious, and it underperformed its market by 26.5%. statement later, the damage – as noted in and we definitely succeeded. The In the year it underperformed by 25%. this month’s editorial – has been done. Arubans were very surprised when the first campaign ads came out and The fall in its share price started around 19 Stories on various attempts to clean notes wanted to learn more about the new February (roughly a week later than most via, for example, disinfection, were also banknotes. Each day people were other companies in the industry) – from a widely published, simply adding weight to looking forward to the next ad to see high of SEK 398 reaching a low point of the story, with the result that cash – mainly which animal we had put into the SEK 158 on 23 March, a fall of 60.3%, banknotes but also coins – is widely seen spotlight. And the public started asking before recovering to end the period at as a means of spreading and catching the for the next teaser animal, sending in SEK 191. virus and so unsafe to use. suggestions to us with arguments for Central banks have been too slow to Prosegur’s share price, like that of Loomis, their favourite animal. also fell from around 19 March. Its high reassure the public that cash is no less safe This was indeed one of the most point in March just prior to the fall was than other products or surfaces with which effective marketing strategies that we €3.91 and its low point €2.03, a fall of 48%, people interact on a daily basis. And some could have used. It worked very well despite releasing encouraging results for have been actively promoting cashless – and an innovative and creative way 2019 (see page 4). alternatives. Meanwhile the industry – albeit now coming to the defence of cash – has to show that the CBA also has normal In the period, Prosegur’s market value also been too slow and too fragmented in people as its staff!. fell from €3.75 billion to €2.33 billion, a its approach. 38% fall. In the period it underperformed its market by 13.5% and in the full year The consequences are that retailers by 37%. are refusing to accept cash, with a corresponding increase in alternative Falls for ATM and service providers payments, particularly contactless. At Diebold Nixdorf started this year with the same time, economic activity has confidence as indicated in its 2019 Report nosedived, further suppressing demand and Accounts. However, COVID-19 has for cash and all the normal activities in the knocked that confidence off course. In cash cycle. the period its market value fell by 61.6% It follows that investors, having absorbed – the highest of any company in this these negative aspects, both short and long portfolio, reducing its market value from term, are steering clear of the cash industry $765.6 million to $298 million. It also – certainly for the time being. Will this be underperformed its market in the period by permanent? Only time will tell. But in all 40%, and in the year by 48.5%. crises, there are always winners and losers. And in this particular crisis, cash is definitely proving to be a loser.

CURRENCY NEWS | INDUSTRY WATCH VOLUME 18 – NO 3 | MARCH 2020 9 The Science Behind Bioguard Enhance Currency News was keen to find out Q: From our understanding, Bioguard is Q: Are there any trade-offs required to more about Oberthur Fiduciaire’s new an anti-bacterial defence. How is this new adopt this solution? ™ Bioguard Enhance anti-viral treatment solution different? A: There are no changes required at all for so we met, on the phone of course, A: Bioguard is indeed an anti-bacterial (and the banknotes – existing security features, with Henri Rosset – Research Centre anti-fungus treatment) but it also builds designs, and machine reading features Manager, VHP Security Paper, which is a on the previous work undertaken by the can continue as today. This makes the subsidiary of Oberthur Fiduciaire. R&D teams against banknotes carrying the technology available to every part of our influenza virus. This new solution is different banknote community. because it is effectively the combination Q: Will you make this available to other of Bioguard in the paper and Bioguard paper makers, not just for banknotes? in the varnish which enlarges the activity Yes, very much so! We see this as an spectrum and provides us with a much A: industry solution. The world is facing a more powerful solution. pandemic which affects us all – our friends, Q: Can you provide some more families and our whole industry. I am very details about the science behind pleased to know that Oberthur Fiduciaire Bioguard Enhance? is keen to share its solution with other A: It is well known that silver has anti- providers, competitors and all those in the bacterial and anti-viral properties. So, we supply chain. use a silver-based component in both the As far as other industries are concerned, paper and varnish treatments which are we are obviously open to share the active against bacteria and also viruses technology, bearing in mind that it is when introduced into both paper base and valuable for any object that is handled into the varnish: this combination enables frequently by humans. significant anti-viral activity. Q: How long have you been working on The Bioguard Enhance anti-viral activity this solution? was assessed against a seasonal I have personally been working in this coronavirus, the OC43 which comes A: field for 15 years and I have constantly Henri Rosset. from the coronavirus family to which been trying to find solutions in this area. To COVID-19 belongs. The results showed Q: At this time, everyone in the world is discover that our products work against that our solution offers a significant anti- considering how they can protect themself coronavirus OC43, a representative viral protection. from the threat of COVID-19. We know of the coronavirus family that includes that the virus can survive on many surfaces And yes, it continues to protect against COVID-19, was a very exciting moment for and is transmitted via the hand to the face. bacteria and microscopic fungi. In me, personally. particular, Bioguard treatment has been How does your solution break this cycle How confident are you in the tested to demonstrate its effectiveness Q: for banknotes? performance of Bioguard Enhance? against the bacteria responsible for carrying A: Well, all viruses die naturally on plague and cholera. A: We are scientists and look at the results banknotes, like any other inert material. in an objective way and that is why we are Where banknotes are circulating fast, What Bioguard Enhance does is to Q: quite confident. accelerate the dying process. they wear and soil fast. How robust will Bioguard Enhance be in circulation? We have been working with a leading The laboratory tests that were conducted laboratory, using standardised procedures Good question! We have experimented on Bioguard Enhance measured the A: with detailed protocols in the field of with the components in our Bioguard paper remaining viruses that survived after five pathogen testing in the USA and so our lab for many years with papers stored in normal hours on both a regular PVOH (polyvinyl test results are credible and robust. alcohol) paper sample and a paper sample conditions. Of course, when banknotes We believe, given their similarities in treated with Bioguard Enhance. On the become unfit and severely soiled through structure (they're both enveloped viruses), untreated PVOH paper, 92.4% of the circulation it increases their weight because that it is logical that all coronaviruses and viruses had died after five hours, while on of the accumulated dirt and the anti- H1N1 influenza type viruses will react the sample treated with Bioguard Enhance microbial protection can be reduced as any similarly to this treatment. For H1N1 more than 99.9% of the viruses were other paper property would be. This is why influenza type viruses, tests are ongoing. destroyed. This means that the remaining Bioguard Enhance was developed in order This is as far as we can go. Nobody can amount of the virus is 100 times less than it to ensure the optimisation and long-lasting tell you from what virus the next pandemic would otherwise have been. impact of the inherent properties. will spring. What we think is that the We therefore recommend Bioguard By accelerating the destruction process, banknotes would be more protected with Enhance as a combination of a paper and Bioguard Enhance effectively diminishes this treatment and less able to contribute to varnish to give protection throughout the the probability of contamination through general contagion. exchange of banknotes. banknote life in circulation. We are very transparent with the Q: Can you tell us a little more about performance of our paper and can provide Bioguard Enhance? any information related to the test results to A: It is a combination of Bioguard in paper whomever would like to see them. and Bioguard in the varnish, applied post print. This combination is called Bioguard Enhance.

10 CURRENCY NEWS | ON THE RECORD Windows of Opportunity from KURZ At the Banknote Conference in Dallas in confined the design to a stripe application For the second concept note, the APL 2018, foil manufacturer KURZ unveiled format. KINEGRAM APL overcomes this depicts a spider which is again applied over its new banknote window feature limitation by enabling banknote printers to a die-cut window and uses KINEGRAM – KINEGRAM® APL (Applied Patch create window features for paper notes COLORS technology. KINEGRAM ZERO. Label). At the more recent HSP EMEA in their own premises, thus retaining both ZERO® partial metallisation is also used, conference in Lisbon, it revealed the value and process control. allowing filigree line resolution down to first application of this feature on two The two concept notes designed and 40μm, and perfect registration of the optical sample (concept) notes designed by produced by HBPC feature Ottó Herman, effects with the metallisation. The authentic György Pálinkás and produced by the one of Hungary’s most productive and impression of the spider is produced by Hungarian Banknote Printing Company / internationally known scientists. Reflecting the surface relief 3D effect combined with Pénzjegynyomda Zrt (HBPC). his passion for birds, insects and spiders, pumping and transformation movements. both sample notes illustrate biodiversity. Both sample banknotes were industrially KURZ provided two KINEGRAM APL produced under real-life banknote printing features for these notes, applied on the conditions, and tested against banknote latest Gietz FSA 1060 Foil Commander industry quality standards. foiling machine. The first involves an eye-catching butterfly APL applied over a die-cut window. The patch incorporates KINEGRAM COLORS® technology, showing different colours on the front and back of the foil. The feature While window features are becoming also included a striking FLUX effect that increasingly popular, the options for central exhibits several movements in different banks wishing to specify these are limited directions. In addition to the Flux effect, the to either the use of polymer or compost foil contains delicate fine line movements substrates, of to having the foil applied over and a virtual 3D surface relief effect. the window at the paper mill, which has

EyeQ – Truth is in the Eye of the Beholder Bank Innovation Systems LLC (BIS) was At the numbering machines, the serial throughput of 10,000 sheets per hour, established in 2006 by the engineering numbers applied are linked to the barcodes its BISM complete finishing single note team of BARS, who make banknote on each sheet so that, after cutting, it is still inspection system with a throughput of sorting equipment. While it still produces possible to connect the individual banknote 388,000 notes per hour, and its QIS 300 sorters, BIS has focused on the creation back to the sheet it came from. sampling inspection system for sheets. of finishing quality inspection systems As well as tracking the sheets, the system According to BIS estimates, through the and has been working with Goznak’s creates a quality record for each sheet implementation of the system, overall paper and banknote production teams to process by process. The data is used throughput increases by 10%, while create a comprehensive quality control to generate reports on the quality and industrial and technical rejects are reduced and production records system. This so- performance achieved for each sheet for by 50%. called track and trace system – EyeQ - is each process step, including on the people In paper mills the system marks each sheet now ready for wider use. working at the time. A history of every of white paper with a unique bar code. In Currency News’ Directory of Currency end-product sheet is created as it passes paper factories, marked sheets are tracked Suppliers lists 27 companies active in through production so that it is possible to at every production step, and - if numbering supplying quality control and inspection know what was done by whom, when and machines are used - banknote numbers are systems for banknotes, so BIS are entering on what equipment. matched to a sheet number. a crowded field with their new EyeQ The EyeQ uploads data from the printing The BIS team has about 25 years of system, which is designed to enhance the quality control systems to analyse product experience in developing and delivering economic efficiency of banknote printing quality and the reasons for quality rejects, integrated solutions for support of the full by providing process-oriented/production allowing timely and detailed analysis, with life cycle of banknotes and printed security support departments and management every defect traceable back to the process products. EyeQ systems have been with on-line production data, including and shift that made it. EyeQ is intended integrated at all of Goznak’s production equipment types and operators involved. to be used to recognise latent problems sites throughout Russia, two paper mills The approach BIS are taking is to use a and, consequently, allow production to be and two banknote printing factories, where standalone device to add a unique barcode restructured to resolve them. they are used in all steps of the banknote to identify each sheet of paper. In the EyeQ can be used with a wide range of production cycle. Clearly the system printworks each production process has high-performance systems, including those is well established in Goznak, but the barcode readers integrated into them to of BIS, such as its QIS 700 complete company's customers are also located in track the sheet at every stage. inspection system for sheets with a 10 countries worldwide.

CURRENCY NEWS | ON THE RECORD TECHNOLOGY NEWS | VOLUME 18 – NO 3 | MARCH 2020 11 Physical to HSP EMEA – Success in the Sun Digital: a Despite Gathering Storm Clouds Despite the gathering storm clouds of The launch of the Bank of England’s latest Revolution coronavirus, over 270 delegates from polymer note, the £20, was covered by across Europe and beyond converged the Bank itself and then by the production in Document on Lisbon, sunny capital city of Portugal, team giving both the design and policy to make High Security Printing™ (EMEA) story behind the note and how De La Rue Security 2020, which took place 9-11 March, a and Komori ran a structured programme Reconnaissance International – highly successful conference – as well to reduce waste while maintaining quality co-publisher of Currency News™ as probably the last industry event for and output against a tight schedule. The – has recently published a free some months to come. central banks of Armenia and Morocco to download white paper titled The currency agenda was as strong as also introduced their new series and a ‘Physical to Digital: A Revolution in ever, despite a handful of speakers being commemorative note respectively. Document Security.’ unable to attend due to travel restrictions. Technology had a prominent place in This examines this transition in security But communication technology allowed the agenda in the context of security documents from physical to digital, the all but one of these to present and so features, increased printing efficiency and perception that digitisation is the future the programme was virtually unaffected environmental changes. There were some for payments and identity and that the by events. familiar faces, such as Landqart and KURZ, transition is well underway, inevitable, As ever, delegates had a strong mix of who provided examples of where and why unstoppable and irrevocable, driven design, production, policy and operational their products are being used today. There by convenience. topics with two important pre-seminars were some new entrants, for example With an emphasis on cash/payments subjects to start. Innovation, whether in Demax (new optically variable features), and personal ID, the paper outlines design, security features or manufacturing Regula (analysis of soft and hard magnetic how physical documents are tangible, was the underlying theme for the printing), Seprinto (a new plate and chablon known and are designed to be secure conference, providing much to think about. approach) and SPGPrints (improving rotary screen pre-press and printing). first and foremost. Moreover, there is The conference started with two pre- 1,000 years of history and experience seminars that were well supported, one KBA-NotaSys spoke about their new in the world of banknotes, passports on the environmental and climate change approach to intaglio plate making and other secured documents, and a impact of cash and the other on how well and printing which reduces a seven- key driver for specifiers and designers the new Europa series of euro banknotes is step process to three, reducing time, is security and document protection. performing against the counterfeiter. material usage and saving ink. WTG Digital financial transaction systems and Water Treatment also spoke about The environmental seminar was ambitious identity credentials, by comparison, the environment and the benefits of in that it covered every step of the cash have a 30-year history and this field their approach. cycle. There were some excellent examples is technology, not security, driven of change and improvement and real detail Two new studies were presented. The first, – starting with the innovation of the about what is significant and what makes a which has just been completed, was about internet and the smartphone. difference. Future conferences will continue the history and development of security The white paper examines the way on this topic – building on Lisbon but threads up to the latest technology. The forward in this transition, or revolution, moving to a workshop structure. second is in progress and is collecting and whether the commitment to cash in circulation data from every central This was followed by an unusually open and security and protection that drives the bank to understand what is happening by frank session from Manuel Mourato, Senior physical secured document field can denomination to currency around the world. Forensic Expert from the Judiciary Police be inculcated among digital systems The study is looking for useful lessons for National Counterfeiting Analysis Centre in developers and adopters. And if all day-to-day as well as general trends Portugal, who not only gave his view on so, how? and patterns for a range of groupings such how secure those banknotes are and if the as geography, GDP, adoption of non-cash new features will be sufficient to prevent payment means etc. counterfeiting, but also provided numerous examples of counterfeit features for the The final currency session focused audience to examine and handle. The on counterfeiting. The Bank of Russia good news for the Europa series is that the explained their highly structured and combined effect of the changes is working, thorough approach to combatting the and counterfeiting is reducing noticeably. counterfeiter, and Jura, on behalf of the National Bank of Hungary, talked about the The conference itself was formally opened smartphone app introduced by the Bank to by Hélder Rosalino, Member of the Board, authenticate their banknotes. Banco de Portugal. He was followed by Sérgio São João, who heads up Valora, The currency agenda delivered a rich the printworks set up in 1999 as a joint and broad programme with some strong venture with De La Rue to print Portugal’s themes for the future, to be continued and indent of the euro, but which is now wholly developed at the HSP sister events in Latin owned by the central bank. He reviewed America and Asia, as well as the next HSP the company’s recent development strategy EMEA, the dates and location of which are and the changes it is making to meet the to be announced, but which will take place new challenges of euro production. in Spring 2021. To download the free white paper visit www.digitaldocumentsecurity

12 CURRENCY NEWS | CONFERENCES Three Winners of Regional Cash Banknote Awards in Lisbon Innovation New banknotes from Armenia, England and Poland were all winners in the HSP Comes to EMEA Regional Banknote of the Year awards in Lisbon. Prague with The awards are made for banknotes which reach the highest levels of achievement in design, technical sophistication and security WBS 2020 and there are three categories – Best New 100 delegates, 43% of whom were Series, Best New Banknote, and Best representatives from 29 central banks New Commemorative Banknote. Their and state printing works, met in presentation formed the highlight of the Melanie Huttenen of De La Rue collected the Best Prague at the end of February at the HHSP EMEA gala dinner that took place New Banknote award on behalf of the Bank of World Banknote Summit (WBS) 2020. on 10 March at the stunning SUD Lisboa England. The topics ranged from a printer forum Restaurant on the banks of the Rio Tejo. The note has also been designed to led by Banco de México and Valora PT The Central Bank of Armenia’s new drams withstand the rigours of the modern cash through to presentations on Central Bank won the accolade for the Best New Series, cycle and incorporates a special tactile Digital Currency (CBDCs) by the Bank of reflecting the country’s commitment to feature to aid the visually impaired. Several International Settlements, which laid out improve the quality of its currency in the overt and covert design features include the landscape, and the Banco Central del face of one of the toughest environments in a metallised 3D image of the coronation Uruguay and the South African Reserve the world for circulating notes. crown on the font with a purple foil patch Bank giving us their experience of doing The series – in denominations of 500, based on the staircase at the Tate Britain on it for real. There were three overriding 1,000, 2,000, 5,000, 10,000, 20,000 the reverse side. impressions from the conference. and 50,000 drams – is produced on a The Best New Commemorative Firstly, the breadth of the formats composite substrate that combines the Banknote accolade went to the National offered in the programme. In addition durability of polymer with the printability Bank of Poland for its 19 Zloty, which to presentations, there were panel and inclusion of paper to produce highly commemorates the 100th anniversary of immersion sessions, workshops, the durable and secure banknotes. The design the Polish Security Printing Works being printer forum and a new innovation, the of the notes also reflects the historical, established. The banknote, which went ‘Chatbox’, where delegates could join a cultural and religious themes of Armenia, into circulation in October 2019, stood group discussion led by an expert on a which is the first country in the world to out because the face value – 19 – is topic. There were seven topics and two have an entire banknote series printed on unusual, while the combination of traditional sessions. Interestingly the three most Louisenthal’s Hybrid® ADDvance paper/ design and modern security features popular topics were ‘measuring cash polymer composite. also impressed. usage and the cost of cash’ (University of St Gallen), ‘how to create a banknote specification like an expert’ (UGRA) and Barzahlen’s ‘21st century cash payment solution’. Secondly, how genuinely international WBS was, with 14 countries and 26 delegates from outside of Europe. This mix of attendees, along with the human scale of the event, led to an interactive, varied and active question time after each session. Suren Simonyan, Head of Currency Issue Marzena Sadecka of PWPW receiving the award for Coordination Centre of the Central Bank of Armenia, the Best New Commemorative Banknote. Finally, in addition to speakers on which won the Best New Series award. topics familiar to most conferences, It’s also among the first banknotes with the WBS organisers also managed to The Best New Banknote award went to the a registered KINEGRAM® HDM (High attract speakers not normally heard. For Bank of England for its new eye-catching Definition Metallization) foil stripe from example, two retailers speaking about £20 note featuring renowned English artist KURZ applied over a die-cut window and their view of cash and central banks who JMW Turner. Produced on De La Rue’s the first with SICPA’s new SPARK® Live are leading in new areas, such as Norway Safeguard® polymer substrate alongside colour combination – violet to bronze (which and the Netherlands addressing less CCL’s Guardian® substrate, the banknote reflects the principal colours of the note). cash, the Bank of Israel and Bundesbank has two windows and incorporates on data analytics and Morocco on several innovative features, including a the use of augmented reality in public registered KINEGRAM® COLORS foil stripe education. Add in CBDCs, Bitcoin from KURZ. Suisse, Barzahlen and eCurrency, and new technology was also covered. WBS 2021 will be 27-29 September in Antwerp. The organisers have promised even more innovation for 2021.

CURRENCY NEWS | CONFERENCES VOLUME 18 – NO 3 | MARCH 2020 13 Some Progress but More to Do for Gender Diversity in Currency 8 March 2020 was International The lack of diversity is also seen in Yet there is progress towards gender Women’s Day and people around the banknotes, in part reflecting that banknotes diversity and the currency industry is world celebrated the social, economic, often honour the ruler of their country. naturally diverse in places. Conferences are cultural and political achievements of Quartz recently analysed 622 banknotes regularly attended by female representatives all women. from the 75 largest economies and found of regions all around the world, and This event marks a call to action for that only 12% of banknotes depicted a conference speakers and panellists are accelerating women’s equality and named woman, whereas 84% featured a regularly women. When BBC Radio wanted highlights that no country in the world named man. Excluding Queen Elizabeth II, to talk about the future of cash recently, its has yet achieved gender equality. There is the only nation to have a woman panel of experts was predominantly female. is no simple solution but the case for on every one of their currently issued Among currency suppliers there are also gender equality is now clear. Diversity banknotes and one of only a minority of some signs of progress; for instance half expands the talent pool, encourages more other countries, such as Sweden, Japan of De La Rue’s Executive Leadership Team competition and leads to better longer-term and Denmark where men and women are is now female. The owner of Giesecke + performance. When formulating policy it represented equally. Devrient and one of her supervisory board means that a range of views help inform risk Of the women on banknotes, Cash members are female. Three of the leading management and decision making. Essentials recently pointed out that half mints on the international stage – those of The 7th OMFIF Gender Balance Index of those banknotes featured Queen the UK, Canada and South Africa – are all reports some progress towards gender Elizabeth II – ie. 42 notes, mostly from headed by women. And on International diversity at senior levels of financial countries where she is the head of state. Women’s Day 2020, social media revealed institutions, stating that it is slow but in These account for half of all banknotes the event being celebrated by many central the right direction. The European Central featuring women. banks around the world. Bank now has Christine Lagarde as its This is encouraging, and this year OMFIF’s first female President, there are 14 female gender balance index improved to 28% (up central bank governors and several female from 25% in 2019, with 100% representing chief cashiers. perfect gender balance). But the think-tank This means only 7% of all central banks noted that ‘action is needed to correct currently have a female governor and opportunity asymmetries and level the institutions headed by women represent playing field and create more inclusive and less than 30% of the global economy. supportive work environments.’ 20% of all central banks lack any female in So the world is changing and the industry any senior position, defined as governor, is evolving too, but perhaps not yet quite deputy governor, member of monetary quickly enough. policy setting committees or an executive Continued on page 16 > board director.

The 14 Women in Charge of Central Banks

Anita Angelovska Bezhoska – Governor of the National Bank Jeanette Semeleer – Governor of the Central Bank of Aruba of North Macedonia (since May 2018) (since September 2008)

Caroline Abel– Governor of the Central Bank of Seychelles Jorgovanka Tabaković – Governor of the National Bank of (since March 2012) Serbia (since August 2012)

Catia Tomasetti – Chairman of the Central Bank of the Joy Grant – Governor of the Central Bank of Belize Republic of San Marino (since May 2018) (since October 2016)

Christine Lagarde – Incoming President of the European Maiava Ainuu-Enari – Governor of the Central Bank of Central Bank (starting November 2019) (since August 2011)

Cindy Scotland – Managing Director of the Cayman Islands Nor Shamsiah Mohd Yunus – Governor of Bank Negara Monetary Authority (since June 2002) Malaysia (since July 2018)

Elvira Nabiullina – Governor of the Retselisitsoe Matlanyane – Governor of the Central Bank of (since June 2013) Lesotho (since January 2012)

Irma Margarita Martínez Castrillón – Minister President of the Verónica Artola Jarrín – General Manager of the Central Bank Central Bank of Cuba (since June 2017) of Ecuador (since May 2017)

14 CURRENCY NEWS | WOMEN IN BANKNOTES Namibia In Other News… The Royal Monetary Authority of Bhutan The Central Bank of Tunisia has issued a Celebrates has announced the launch of new 5 new 10 dinar banknote, featuring a women and 10 ngultrum (Nu) circulating coins for the first time in Tunisian currency. Dr Peace, Stability to coincide with the 40th birthday of Tewhida Ben Sheikh, born in 1909 was the HM the Druk Gyalp. The current highest first Muslim woman to become a physician and Progress denomination coin is the Nu1. It is in North Africa in the 20th century, and The Bank of Namibia has launched assumed that the new coins will replace was particularly renowned for her work a commemorative N$30 banknote the banknotes of the same denominations. in women’s health. Security features of to celebrate the country’s 30th Both coins are made from nickel-plated the new note include a watermark of Dr independence anniversary. While the steel and have tactile edges, microdots, Ben Sheikh with an electrotype of the Bank has issued commemorative coins microtext and a latent image. The Nu10 denomination numeral and a MOTION® in the past, this marks the first time it features a portrait of the present king, and RAPID security thread. has issued a commemorative note. The the Nu5 a portrait of his father. themes of the note are three decades The East Caribbean Central Bank has of independence, the smooth transition The Bangladesh Bank has launched announced that a new $5 note, the last in of power between three presidents, and commemorative 100 and 200 taka its new series, will be put into circulation peace, stability and progress. banknotes in celebration of the in September. 100th anniversary of the birth of the Bangabandhu Sheikh Mujibur Rahman, The new £20 notes on Safeguard® often known as Father of the Nation. polymer issued by two of Scotland’s Both banknotes contain the secure three note issuing banks last month have next-generation threads from De La Rue been joined by the third, from the Royal – Kinetic StarChrome® in the case of the Bank of Scotland (RBS). Also produced 200 taka and, making its debut in the 100 on Safeguard, the £20 is the third in taka, the new Ignite® thread launched by RBS’ series of ‘Fabric of Nature’ themed the company in 2018. notes, in keeping with which it features red squirrels on the reverse and also the blaeberry fruit. The portrait on the front is of Kate Cranston, a turn-of-the-(19th) century entrepreneur – continuing the RBS’ tradition of celebrating in its notes Scottish women who have made an impact Symbolising these themes, on the front (both the £5 and £10 also feature ‘note- of the note are images of the three heads able’ women). of state since independence, namely the founding President Dr Sam Nujoma, former President Dr Hifikepunye Pohamba, and current President Dr Hage G Geingob. The reverse depicts the Black Namibian The National Bank of Belarus is Rhino, which is facing extinction as continuing the upgrade of its banknotes one of the world’s most endangered with the introduction of new versions of species. The image supports Namibia’s the 20 and 50 rubles. Printed by Goznak, campaign to end rhino-poaching and they have an additional watermark and demonstrates its commitment to natural wider security threads than the previous resource management. versions. Other notable features of the note, which is printed on Guardian® polymer, include The Bulgarian National Bank (BNB) has a large window with an image of a black issued a new 20 lev note, the third in its rhino, a -to-blue G-Switch design and new series which began with the 100 levs six clusters of raised dots in the top right in 2018 followed by the 50 levs in 2019. corner, which helps visually impaired and Still to come are the 5 and 10 levs. partially sighted people to identify the value. The series follows the style and themes of The N$30 commemorative banknote will its predecessor but has upgraded security co-circulate with the current series, issued features. These include RollingStar® LEAD in 2012. A public education campaign is stripe and RollingStar® thread, as well currently underway. The Bank is likely to put as SPARK® Live. The notes have been the new note into circulation in May. produced by Oberthur Fiduciaire AD, the joint venture between Oberthur Fiduciaire and BNB Printing Works Corporation.

CURRENCY NEWS | WOMEN IN BANKNOTES NOTE AND COIN NEWS | VOLUME 18 – NO 3 | MARCH 2020 15 Gender Diversity in Currency (Continued) Note-able women. Top: Viola Desmond was a Canadian civil Bottom: in 1903 the renowned scientist Below are three examples of banknotes rights campaigner and businesswoman Marie Curie, was awarded the Nobel Prize featuring noteable (or note-able) women. of Black Nova Scotian descent who for Physics together with her husband for challenged racial segregation in 1946 by their work on radioactivity. In 2011 she won refusing to leave a whites-only area at a the Nobel Prize in Chemistry for her work cinema. Her act of defiance helped start the on polonium and radium. modern civil rights movement in Canada. These achievements made her the first She is commemorated on the country’s woman to ever receive the Nobel Prize, and newest $10 bill, issued in 2018. the only woman to date to have received Centre: The Mirabel sisters were political two. To celebrate the 100th anniversary of activists and opponents of the country’s her Nobel Prize in Chemistry, the National brutal military dictator Trujillo, who were Bank of Poland issued a 20 złoty banknote murdered in 1960. The three sisters with her image in 2011. are not just heroines in the Dominican Republic, where their portraits appear on the 200 Peso Oro note issued in 2007, but are also symbols of women and human rights worldwide.

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