VOLUME 17 – NO 10 / OCTOBER 2019 Glory Buys Majority Stake WW1 Coin Heads Winners in Virtual ATM Company at IACA Awards A new coin issued to mark the 100th anniversary of the end of the 1st World War has won top awards at the IACA (International Association of Currency Affairs) Excellence in Currency Awards for Coins, which were announced at the Coin Conference in Rome earlier this month. Berlin-based Cash Payment Solutions, The completion of this transaction is subject which operates under the brands to clearance from the relevant regulatory Barzahlen in Germany and Austria authorities in accordance with applicable and Viacash in Switzerland, is selling laws and regulations. 53% of its shares to Japanese cash According to Glory, it has been investing management specialist Glory. actively in a business model to realise Cash Payment Solutions is a bank- the ‘new management system of cash independent cash settlement platform circulation’ in line with our ‘Long-term that turns retailers into ‘virtual ATMs’ (see Vision 2028’. Issued by the Reserve Bank of New CN October 2017). It enables users to Behind this is its view that one of the factors Zealand, the Armistice Day coin won deposit and withdraw cash and make cash for the global trend towards cashless, or both the ‘Best New Commemorative payments for e-commerce and utility bills at less-cash, payments has been the high or Test Circulating Coin Issued at Face nearby supermarkets, drugstores and other costs of handling cash, even though Value’ and ‘Best New Circulating Coin- retail outlets by just showing a barcode, cash still remains an important means related Public Education Campaign, without the need to visit an ATM or a shop of payment. Hence it is intensifying the Website, or App’ categories at of the service provider. CPS has more provision of solutions for industries to make the event. than 16,000 partners offering the service, their operations more efficient, stating: mainly retailers. ‘we believe that, by realising efficient cash The coin commemorates the history, The retailers enjoy benefits such as circulation across society beyond the service, and sacrifice made by service reducing cash collection costs, attracting border between bank branches and retail personnel and their families to bring more shoppers, receiving commissions, shops, we can make the cost of cash peace to New Zealand and the world. etc. The associated banks can provide handling even lower.’ Judges highlighted the coin’s striking use of colour and praised its strong cash deposit and withdrawal services CPS's business model will contribute to educational role in an Armistice Day more cost effectively than via ATMs or that realisation. bank branches. E-commerce providers public awareness campaign, which The same rationale was behind a $6 million can attract consumers who prefer invited people to ‘SPEND IT. KEEP IT. round of funding for Singapore-based cash settlement. REMEMBER’. It was produced by the SoCash, which Glory led in July. It provides Royal Canadian Mint. CPS was founded in 2011. Its management s similar service to CPS, and is now being Continued on page 11 > will continue to manage the company, rolled out to neighbouring Indonesia, focusing on expanding the business and Malaysia and Hong Kong. network in Europe. www.currency-news.com Coins v Banknotes, or Coins and Banknotes? It sometimes appears that coins and There are significant differences – the denomination coins are not needed was banknotes are troubled siblings, with products themselves, the issuers (in some discussed, particularly by the ECB and the all the friction that implies. Conflict is countries the central bank produces US, both of which face significant negative normally sparked around the coin-note banknotes and coins whereas in others seigniorage on these coins. In the Euro boundary and, despite sharing so many the treasury is responsible for the latter), area research shows public demand in of the same challenges, sometimes they and the seigniorage system that generates favour of this, but ultimately such decisions appear to operate in parallel but almost value for the central bank and/or state (not have big implications for mints and are entirely separate universes. least because coins last around 20-25 politically sensitive. years and are not recirculated to any great Similar to ‘payment’ and ‘market’ notes extent). The cost, value, lifecycle, handling for banknotes, the concept of transaction Inside this Issue systems and recirculation models are also and settlement coins was introduced by very different. Jon Cameron, latterly Associate Director 1 Glory Buys Majority Stake The Coin Conference has just taken place of the US Mint, with the differentiator ‘can in Virtual ATM Company in Rome and, while highlighting these you buy a cup of coffee with two coins?’ 1 WW1 Coin Heads Winners differences, it also highlighted what coins The National Bank of Moldova explained at IACA Awards and banknotes have in common. This the D-Metric analysis they had done when started with the results of a number of planning their new series, the National 2 Coins v Banknotes, research projects into public attitudes to Bank of Kyrgyzstan explained why their or Coins and Banknotes? coins. As with banknotes, coins represent new series included a 3 som coin and something more to the public than just the Bankgo Sentral ng Pilipina why they 3 Bank of England Unveils being a payment token. had changed seven coins for six in their New £20 Banknote Beyond that, both coins and banknote new series, dropping the 10 sentimo. Science and public research lay behind 3 Rising Costs of face some shared challenges. Declining these changes. Currency in Nigeria usage driven by new alternative payments and changing public behaviour, currency There were some common themes 3 Successful Conclusion to that ‘disappears’ and does not circulate when presenters spoke about increasing Kenya’s New Currency (albeit for different reasons) and how to recirculation. The initiatives included 4 get currency to recirculate efficiently, mechanisms for commercial organisations News in Brief forecasting but with poor data and to work directly together to move surpluses 5 Banknote Survival changing payment landscapes. Despite to match deficits, new central bank hubs to Analysis this, both are investing in their products and facilitate coin issue and deposits organised cash cycles. on more commercial lines and commercial 6 People in the News Perhaps there is something to learn from and government measures to make coin machines accessible for the public to 7 More than a Printer, a each other? deposit coins. Spain, for example, had As with banknotes, the volume of coins in Partner for the Future run a very successful trial in Madrid with a circulation continues to rise at an apparently public coin deposit machine. 8 Historic Highs for healthy rate. However, the Dutch National Australian Banknotes Bank (DNB) demonstrated the difference The environment – shared goals between the number of coins in circulation and challenges 9 When Micro is Nano and issue rates with the number of coins Notes and coins also share an imperative to 10 Nanotech Launches issued in the Netherlands in 2019 – down ensure that their products and processes KolourDepth™ to 45 million compared with 104 million in are as environmentally-friendly as possible, 2016. India, Mexico, Spain and the US also and one of the sessions focused on 11 FNMT: Investment Leads reported on a significant build-up of coin this topic. With the ‘green agenda’ ever to Flesure stocks due to declining usage. more important – be this related to raw materials, energy consumption and 11 HSP Asia – All Eyes on Forecasting coins was reckoned to be emissions, or reducing pollution – both Yokohama! harder than for banknotes primarily due to poor data and the impact of structural sides of the industry share the same goals 12 Chatboxes Add a changes and fast moving innovation and challenges. New Dimension to WBS in payments. Mexico has put in place Lessons to learn? The power of research 12 measures to collect data from commercial along with the application of science, the MEA Cash Cycle (ICCOS) banks in response to their experience with importance of data and a willingness to Seminar over-stocking. ‘Passive’ coins (or even experiment and change in all areas. 12 Banknote Horizons 2020 ‘sleepy’ coins, as they are referred to in The Coin Conference happens every Germany), as with store of value notes, two years and took place in Rome 15-16 13 Orell Füssli Celebrates clearly create major challenges. October. A record number of countries, 500 Years Appropriate structures for 45, and organisations, 103, attended. A 14 Note and Coin news efficient usage full review of the event is enclosed in the The importance of having in place special supplement this month. The next 15 The Asia Cash Cycle appropriate denominational structures to Coin Conference will be in 2021 and the Seminar 2019 allow efficient coin usage was discussed. Mint Director Conference, where some of The DNB’s research suggests that 60% the issues will be explored in further depth, 15 Cash & Payment News of coins are only used once. Little wonder is 26-29 April 2020 in Cape Town. 16 Counterfeiters Defeated that rounding up prices so that the lowest by Technology 2 CURRENCY NEWS | COMMENT Bank of England Unveils Successful New £20 Banknote Conclusion The Bank of England has revealed the The artist JMW Turner replaces the new polymer £20 banknote design, economist Adam Smith. In addition to a to Kenya’s which will go into circulation on 20 self-portrait of Turner, the design includes February 2020. It will co-circulate the image of The Fighting Temeraire, New with the paper £20 during a transition voted Britain’s greatest painting in a BBC period.