--- title: 'Cash, Currency, Banknote Printing and The Cashless Society - The Money Makers' url: 'https://samisdat.in/blog/cash-banknote-printing' markdown: 'https://samisdat.in/blog/cash-banknote-printing.md' lang: en date: '2017-10-22' description: "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 …" taxonomy: category: - blog tag: - money - 'money printing' - banknotes - currency - audio --- # [Cash, Currency, Banknote Printing and The Cashless Society - The Money Makers](https://samisdat.in/blog/cash-banknote-printing) 22nd Oct 2017 [money](https://samisdat.in/blog/tag:money#body-wrapper) [money printing](https://samisdat.in/blog/tag:money%20printing#body-wrapper) [banknotes](https://samisdat.in/blog/tag:banknotes#body-wrapper) [currency](https://samisdat.in/blog/tag:currency#body-wrapper) [audio](https://samisdat.in/blog/tag:audio#body-wrapper) # Cash, Currency, Banknote Printing and The Cashless Society - The Money Makers An old discussion on [Smaulgld](https://smaulgld.com/) 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](https://samisdat.in/blog/cash-banknote-printing/2017-10-02-currency-cashless-society.mp3) (50 MB) 40 mins Below is a 1960 British Pathé short film "Money Makers" about the old-school way of banknote design and production. [plugin:youtube](https://www.youtube.com/watch?v=Slwn2nDZNtE) ![Book cover of "Moneymakers - The Secret World Of Banknote Printing" by Klaus W. Bender](https://samisdat.in/user/pages/04.blog/banknote-printing/moneymakers-cover.jpg?g-16018011) 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)](http://eu.wiley.com/WileyCDA/WileyTitle/productCd-352750236X.html) by [Klaus W. Bender (wikipedia)](https://en.wikipedia.org/wiki/Klaus_Bender) 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)](http://www.robertogioricompany.com/company/3/2/history-of-the-giori-organization/10/0/gualtiero-giori-biography)) who invented the first 6 colour [intaglio](https://en.wikipedia.org/wiki/Intaglio_(printmaking)) 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's big break](https://samisdat.in/user/pages/04.blog/banknote-printing/giorifranco.jpg?g-16018011) Giori - The Currency King - as an interesting aside, was [the plane hijacking of Roberto Girori](http://www.thehindu.com/2000/01/06/stories/01060003.htm) in 2000. Did this experience convince *elites* to practice demonitisation on Indians first? ![Giori on Indians](https://samisdat.in/user/pages/04.blog/banknote-printing/giori-experience.jpg?g-16018011) [From Time](https://content.time.com/time/world/article/0,8599,2053713,00.html) At 3:10 this video of the modern process of intaglio banknote printing as used by the Swiss National Bank is described: [plugin:youtube](https://www.youtube.com/watch?v=ukkrmKnky8I) The Bureau of Engraving and Printing bought its first Giori press in 1955, see this on stamps about [the giori press](https://postalmuseum.si.edu/stampstakeflight/gioriinnovation.html) ### Digital Banknotes from Giori What are Giori onto with digital money? From their website [robertogioricompany.com](http://www.robertogioricompany.com): ![Creating digital money](https://samisdat.in/user/pages/04.blog/banknote-printing/giori-digital.jpg?g-16018011) ![Central Bank Digital Cash By Giori](https://samisdat.in/user/pages/04.blog/banknote-printing/giori-digital2.jpg?g-16018011) I came across [an interesting tweet](https://twitter.com/elAsunceno/status/830366106472833025), allegedly a proposition from Giori for digital bank notes by someone from Paraguay. ![Propuesta Giori](https://samisdat.in/user/pages/04.blog/banknote-printing/giori-propuesta.jpg?g-16018011) Spanish isn't my first language but this is my translation: *Advantages of digital bank notes* 1. Gives better security to the user via its rapid tracking if stolen. 2. Every algorithm is unique and every transaction realized with digital notes is controlled in realtime. 3. 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. 4. The notes work from the moment they leave the central bank. 5. 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](https://www.financialsense.com/michael-shedlock/war-cash-proposals-in-australia-microchip)? ## Security Features The three main categories of security features are verifiable by: 1. The public (low security) 2. Trade 3. 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. [plugin:youtube](https://www.youtube.com/watch?v=dvcFCLBBah0) For comparison [the new €50 banknote (youtube playlist)](https://www.youtube.com/watch?v=iDJVid5u0Mo&list=PLnVAEZuF9FZkr9JP6CzwPysuX9WYdoFqJ) 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. [plugin:youtube](https://www.youtube.com/watch?v=yPQVs-IOUcQ) To get business, the banknote printers often make in-house signature notes, like this greatest monopoly money note in the world: [plugin:youtube](https://www.youtube.com/watch?v=hSHX7sR9ywg) ### 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)! ![Country Codes on Euro Banknotes](https://samisdat.in/user/pages/04.blog/banknote-printing/eurobanknotecodes.jpg?g-16018011) ## Paper Money Banknote Paper Production for the New €50 Banknote [plugin:youtube](https://www.youtube.com/watch?v=go2D0svwiIM) from cotton bales to finished sheets. ## Plastic Money The switch to plastic from paper has been a hard-sell to the public who long associated plastic with artificiality (even though our paper money is arguably fake!) so various central banks have put out videos to convince us of their utility. Currently c3% of the 172bn banknotes issued each year globally are printed on polymer substrate. The UK notes cost £0.08 per banknote according a(n unsourced) [UK FOI Request](https://twitter.com/RachaelKing_cb/status/927869548291940353) As part of a [polymer series (youtube playlist)](https://www.youtube.com/user/bankofcanadaofficial/playlists) see *Canada's New Polymer Bank Notes — Made to Last* [plugin:youtube](https://www.youtube.com/watch?v=8odUVIAXPS8) Durasafe substrate is the brand of plastic polymer paper used by the Swiss National Bank [plugin:youtube](https://www.youtube.com/watch?v=qJKp-eSXD0o) Australian Banknotes, also see [Australian Banknotes website](http://banknotes.rba.gov.au) [plugin:youtube](https://www.youtube.com/watch?v=FprPDp1tCuk) Tips on handing handling polymer notes from the Bank of Canada [plugin:youtube](https://www.youtube.com/watch?v=X14nXc6-u7M) ## The US dollar As the world's reserve currency, there's some interesting facts and features about the currency. Since 1879 a family-run business [Crane Currency](https://www.cranecurrency.com/) has held a near-monopoly on production of US banknotes. They took over [a Swedish company Tumba Bruk](https://tradepractices.wordpress.com/2012/06/16/1070/) and then by pure coincidence (!) won the contract to produce notes for Sweden which they made into a case study [RIKSBANKEN, THE SWEDISH CENTRAL BANK CHOSE CRANE CURRENCY](https://www.cranecurrency.com/article/riksbanken-sweden-central-bank-case-study/) although their success abroad has been limited compared to the main players De La Rue & Giesecke & Devrient. WP article: [Crane has provided the paper for U.S. money for centuries; now it’s going global](https://www.washingtonpost.com/business/economy/crane-has-provided-the-paper-for-us-money-for-centuries-now-its-going-global/2013/12/13/9aa4190a-5c39-11e3-be07-006c776266ed_story.html?utm_term=.f87c3f77d15a) How money is made and printed (the old way) [plugin:youtube](https://www.youtube.com/watch?v=fnACUyB5NNQ) ## India's Banknotes With demonitisation it's interesting to note the following, given the slow-pace of the introduction of the new notes: ![india1](https://samisdat.in/user/pages/04.blog/banknote-printing/india1.jpg?g-16018011) ![india2](https://samisdat.in/user/pages/04.blog/banknote-printing/india2.jpg?g-16018011) ## The Players ### SICPA The biggest producer of secure ink is Swiss-based SICPA - [Sicpa Homepage](http://www.sicpa.com/) - [SICPA twitter](https://twitter.com/sicpa) [plugin:youtube](https://www.youtube.com/watch?v=i0RqR54jwD4) So who bosses the banknote printing industry? Just a handful of companies dominate the market, by and large De La Rue & Giesecke & Devrient have the vast proportion of business, perhaps 90%+ ### De La Rue [De La Rue Annual Report 2017 (pdf)](https://cdn2.hubspot.net/hubfs/2752422/De%20La%20Rue%20Feb%202017/PDF/DeLaRue_AR2017_FINAL_Web.pdf) [plugin:youtube](https://www.youtube.com/watch?v=hSHX7sR9ywg) - [De La Rue cash homepage](http://www.delarue.com/markets-and-solutions/cash-supply-chain) - [De La Rue plc (twitter)](https://twitter.com/DeLaRuePlc) Founded in empire times and traded on the London Stock Exchange [LON:DLAR](https://finance.google.co.uk/finance?q=LON%3ADLAR&ei=thwiWPH4EY_qU9CVsIgE) they have just won a 10 year contract to [provide plastic for the new £10 notes](http://otp.investis.com/generic/regulatory-story.aspx?=1&cid=42&newsid=936989). This below is a perfect of example of what [James Goldsmith described](https://twitter.com/vijinho/status/804003425960730625) in his book about the consequences of outsourcing. ![De La Rue outsourcing](https://samisdat.in/images/9/d/4/9/d/9d49dbd91446ae40bb3f9574c71b8f1a0dc797b9-delarue-outsourcing.jpg?g-16018011) ### Giesecke & Devrient - Well-written [summary of the company G&D by Trade Practices](https://tradepractices.wordpress.com/2012/06/16/giesecke-devrient/) - [Giesecke & Devrient currency technology homepage](https://www.gi-de.com/currency-technology/) - [G + D (twitter)](https://twitter.com/GI_DE_com) The other major player who have moved ahead and gained a first-starter foothold in other security industries such as e-cards, this is their [youtube playlist on currency technology](https://www.youtube.com/watch?v=Vc83JROu6vs&list=PLJFfWNEv1cG77rplo_R3-RpE--dFuOugF) ### Charles Oberthur Fiduciare The French also-ran in the business although they still get some business. - [Charles Oberthur Fiduciare currency homepage](http://www.oberthur-fiduciaire.com/en/billets-de-banque/#savoirfaire) ### Crane As described earlier above, the US banknote monopolists here's their website: - [Crane Currency](https://www.cranecurrency.com/) The machines for USD Currency are made by: #### KBA Notasys (formerly KBA Giori & De La Rue Giori) KBA - Koenig & Bauer (Wuerzburg, Germany) - [KBA-NOTASYS](https://www.kba-notasys.com/Company) - [Bancnota Magazine](https://www.kba-notasys.com/Bancanota) ### Ciccone Calcofrafica Not really a player but an interesting company to study for further research, they tried to break into the banknote printing game and ended up unwittingly producing counterfeit notes such as [the counterfeit note of Bahrain](http://pjsymes.com.au/articles/BahrainLost.htm) whilst getting into huge debts and finally becoming state-owned by the Argentine government as described here. [Ciccone: The Ins and Outs of Argentina’s Most Recent Expropriation](http://www.argentinaindependent.com/currentaffairs/ciccone-the-ins-and-outs-of-argentina%E2%80%99s-most-recent-expropriation/) ## Cash & Terror? - [Cash is a Public Good, Not a Crime](https://www.gi-de.com/currency-technology/trends/future-of-payment/keeping-cash/) - a white-paper here. - [North Korea counterfeit USD?](https://www.globalresearch.ca/north-korea-and-the-supernote-enigma/8919) probably a CIA-job. - Download ePub [giori-hijack.epub](https://samisdat.in/blog/cash-banknote-printing/giori-hijack.epub) (12 kB) - Download PDF [giori-hijack.pdf](https://samisdat.in/blog/cash-banknote-printing/giori-hijack.pdf) (196 kB) - Read Online [banknote-printing](https://samisdat.in/blog/cash-banknote-printing/read/) --- ## Navigation - Parent: [Blog](https://samisdat.in/blog.md) - Previous: [Auschwitz - An Unbiased Eyewitness Report](https://samisdat.in/blog/auschwitz-an-unbiased-eyewitness-report.md) - Next: [Some notes on The Balfour Declaration](https://samisdat.in/blog/balfour-declaration.md) - Children: - [giori-hijack](https://samisdat.in/blog/cash-banknote-printing/read.md)