Cash, Currency, Banknote Printing and The Cashless Society - The Money Makers
An old discussion on Smaulgld about things on this page and monetary history in general terms. There's a few errors in the discussion with exact dates and stuff, but they shouldn't detract from what's interesting and can be used for further research.
- Download audio (MP3) Paper and Plastic Currencies and The Cashless Society (50 MB) 40 mins
Below is a 1960 British Pathé short film "Money Makers" about the old-school way of banknote design and production.
Over the summer I read a really interesting translation of a book about the history and industry of bank note printing "Moneymakers - The Secret World Of Banknote Printing" (publisher link) by Klaus W. Bender (wikipedia) a 1994 bestseller (economics) in Germany, Austria, and Switzerland. This led me to probe into paper money and the direction it's taking today as we become more digital and increasingly cashless in our financial affairs.
Giori & Intaglio Colour Printing
No study of banknote production is complete without the story of printing entrepreneur Gualtiero Giori (now inherited by Roberto Giori Company (homepage)) who invented the first 6 colour intaglio printing press on which virtually all banknote printing relies globally. For conspiracy theorists Roberto's father was born Gualtiero Coen around World War 2 and kept it and note that his father got his big-break in printing by aiding fascist leader General Franco of Spain.
Giori - The Currency King - as an interesting aside, was the plane hijacking of Roberto Girori in 2000.
Did this experience convince elites to practice demonitisation on Indians first?
At 3:10 this video of the modern process of intaglio banknote printing as used by the Swiss National Bank is described:
The Bureau of Engraving and Printing bought its first Giori press in 1955, see this on stamps about the giori press
Digital Banknotes from Giori
What are Giori onto with digital money? From their website robertogioricompany.com:
I came across an interesting tweet, allegedly a proposition from Giori for digital bank notes by someone from Paraguay.
Spanish isn't my first language but this is my translation:
Advantages of digital bank notes
- Gives better security to the user via its rapid tracking if stolen.
- Every algorithm is unique and every transaction realized with digital notes is controlled in realtime.
- If a forgery is attempted it can automatically notify the central bank (?!) which can remove the note from circulation in the market, or create new money with the same denomination.
- The notes work from the moment they leave the central bank.
- It means a great cost-saving for central banks by saving space and fetching them back to destroy notes once worn-out.
My understanding is that these are some kind of tracked bank notes which the cash machines would interact with, is this what the rumoured Australian microchipped $100 bill is about?
Security Features
The three main categories of security features are verifiable by:
- The public (low security)
- Trade
- The Central Bank (high security)
The videos below detail the first 2 but the central banks tend to not publicly disclose their additional features, which can rely on invisible chemicals and various physical properties
Anti-counterfeit banknote strategies are broadly in two categories, in Europe it's been PREVENTION, i.e. make it extremely difficult to duplicate the printed money through increasintly difficult to replicate security features. In the USA it's been REPRESSION, make the punishments heavy, in fact the US Secret Service was originally set-up to prevent banknote counterfeiting, and unlike much of the rest of the world, no greenback has been declared invalid since 1873! such that for example the $500 note remains legal tender despite being withdrawn from circulation in 1934. The US strategy is about the near-unchanged appearance, unlimited validity as confidence-building factors home and abroad.
Once again a video from the Swiss National Bank who happen to have probably the most secure banknotes in the world, the 50 note is a true work of art.
For comparison the new €50 banknote (youtube playlist) covers each of the security features.
The new Australian $10 banknote security features and also covers what to do in the case of counterfeit notes.
To get business, the banknote printers often make in-house signature notes, like this greatest monopoly money note in the world:
Serial Numbers
The euro banknote serial numbers show a single character to designate from which country the banknotes originated, note the reserved letters J (UK), K (Sweden) and W (Denmark)!
Paper Money
Banknote Paper Production for the New €50 Banknote
