COVID-19 and Cash: a Not-so-Brave New World - Oberthur Fiduciaire
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VOLUME 18 – NO 3 / MARCH 2020
COVID-19 and Cash: Oberthur
a Not-so-Brave New World to Share
Anti-Viral
Technology
Oberthur Fiduciaire has announced
that it has developed an effective
anti-viral treatment to counter
coronaviruses on the surface of
banknotes, and that it is making the
treatment available to all accredited
banknote 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
Is cash safe to use? Institute for infectious diseases, agrees that
evaluated against coronavirus OC43,
While the general advice from WHO about banknotes DO NOT play a significant role
from the coronavirus family that affects
protecting yourself from COVID-19 is clear in the spread of the coronavirus. The risk
humans. The initial findings from the
(eg. wash your hand, keep your distance, of banknotes spreading the coronavirus is
laboratory showed that, under standard
avoid touching your face etc), their advice small ‘unless someone is using a banknote
test conditions, samples treated with
about cash is not. Reports that they to sneeze in’ says Dr Christine Tait-Burkard,
Bioguard Enhance showed 99.9 % of
advised against using physical banknotes an expert in infection and immunity at
the coronavirus OC43 were eliminated.
and coins due to the coronavirus surviving the Roslin Institute at the University
The protocol used is comparable to
on these were quickly picked up by the of Edinburgh.
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.
saying that they have not advocated COVID-19 by touching a surface or object
The science behind this discovery
avoiding cash (‘we did NOT say that cash that has the virus on it and then touching
results from Oberthur Fiduciaire’s long
was transmitting COVID-19’), but rather their own mouth, nose, or possibly their
term collaboration with the USA-
suggested that contactless payments may eyes, but this is not thought to be the main
based laboratory Biological Consulting
be ‘a good idea’, and the risk posed by way the virus spreads.’
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.currency-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,
Inside this Issue in cash withdrawals. Only time will tell if the
reduction is temporary.
UAE, Estonia, Russia, Malaysia to name
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 currencies 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.
The response by the cash community has A number of retail outlets, before their
10 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). And while cash may be one casualty, other
13 Three Winners of Regional
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 Coin 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
under discussion for some time. the public were in favour of abolishing the
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 Jutta Buyse has been appointed
giving four scenarios – (1) to maintain
regional variations. Finland was most in Director General of the International
the status quo (ie. do nothing); (2) to
favour, at 86% (not surprisingly, since they Currency Associatoin (ICA), replacing
continue issuance but at a reduced cost
decided to do without the two coins from Dr Susanne Maise who has stepped
(ie. changing to a cheaper composition);
the outset). Lithuanians were the least in down. She brings 18 years of
(3) to ‘fade out’ the coins (whereby they
favour, at 45%. experience in working with Brussels-
would remain legal tender, but progressively
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. According to Dr Wolfram Seidemann,
of Economic and Financial Affairs
(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 and taxes (EBIT) was also lower at €56
G4S demerges cash business
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. The revenue share from banknote and
exchange rates other than the operating
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
bank and equipment sales to a major reducing working capital through lower
The most notable feature of 2019 was
banknote printer. inventories and receivables in security
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
shareholders. 35% of this business is being could not be sure of its performance.
Most of the company’s sales and profit are
retained, including the company’s cash Managing the possible consequences
derived from the Authentication Systems
operations in the UK. Together, the retained of the pandemic is now the company’s
business, which generated revenue of
businesses had sales of £297 million in top priority, with a professional project
$11.83 million, and achieved an adjusted
2019 and PBITA of £27 million. The sale will organisation already established.
EBITDA of $5.06 million, a 9.5% increase
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 De La Rue won’t be announcing its results
Sound performance from Prosegur 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 The group has operated within its banking
Its operating margin increased from11.6%
business, which includes Cash360, covenants for FY 2019/20. Net debt is
to 12.8%.
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
9.7%, and profit before interest and tax De La Rue is progressing with its
management processes. This business
(EBIT) was up 9.7% at €330 million. Net Turnaround Plan, preliminary details of
grew by 18% in 2019 and is expected to
profit at €160 million was 11% lower than which were announced at the end of
continue growing strongly, at 14-16% per
in 2018. February and which include an accelerated
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
Printing Press Tender experience in operating ATM services and
digital payment systems. This is a great
had received requests from health trusts
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 closed its mint in 2016, and the first three
The Royal Bank of Scotland (RBS), one of
the afore-mentioned potential supplier year contact was award to Mint of Finland
Scotland’s three note-issuing banks, is to
in the leaked tape) – submitted bids last in 2017.
change its name to NatWest, the subsidiary
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
According to RBS, the move is designed production contract, to take effect from
calls for global bids instead, rather than the
to align the group name with the brand 2021, via an EU open procedure and says
previous so-called G2G (government-to-
under which the majority of its business is that the Mint was chosen for providing
government) process.
delivered. But cynics see it as an attempt the best offer overall. The award criteria
The government’s plans involve an in- included not just price, but also quality,
to shake of its toxic past and the financial
country security printing facility so that security and CSR.
crisis of 2008, when it was rescued with
it can produce its own passports, 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
Scandinavia explicitly states that ‘customers will see
no change to products or services as a
an MOU to share the responsibility of
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) Royal Mint Steps up to distribution of metical banknotes and coins
from the present owners Danske Bank,
Nordea, and OP Financial Group.
Help Health Workers are properly conducted and at low cost.’
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
While the organisation typically produces But the Bank will retain responsibility for
in the country under the Otto brand. The
coins, its engineers are to manufacture up ensuring the integrity of notes and coins in
business also provides nationwide cash
to 4,000 of the visors a day. The engineers circulation, monitoring their level of quality,
supply services for bank branches and night
decided to produce these after searching as well as educating the public on issues of
safes for retailers. In addition, it operates
online to see what medical equipment could their handling.
Siirto, an open multi-bank digital platform
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.
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 New Zealand 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
proven Bioguard technology to develop How are central banks treating COVID-19, or fears of COVID-19, will be the
an effective anti-viral treatment for
banknotes? topic of a special report to be distributed
At the same time as saying cash is safe with the next issue of Currency News.
banknotes. This solution can be applied
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
at G.TILLON@fcof.com cash is handled, and these have been
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 A: The new series is very modern, beautiful
and the decisions to also include 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 The public can now explore the 10, 25,
in the world. And ones they appear
central bank’s strategy is to communicate 50, 100 and 200 florin banknotes in a new
to like as much, if not more, than the
immediately any counterfeits to the public. vertical format – each with beautiful artistic
previous notes.
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 A: We had years of preparations before
new banknote series. and equipment.
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
A: When the decision was taken to work in this important project. And since the
the motivation behind the new series and
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.
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
on the Dow Jones Exchange, it began to
but in the period of austerity following the Substrates and banknotes
financial crash of 2008, virtually no country fall steeply.
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
confidence for 2020. But as with others,
Aruba (Continued)
In the last Industry Watch we reported a
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.
year it underperformed by 16.5%. from ¥213.82 billion to ¥162.91 billion, and
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
statement saying that the coronavirus was animals, also key elements of the
Loomis released impressive results for
carried on banknotes and that people could previous series, were maintained but
2019 (see last month’s CN), but in the
become infected this way. The story spread updated for the new banknotes.
period its market value still declined by a
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
Stories on various attempts to clean notes the first campaign ads came out and
The fall in its share price started around 19
via, for example, disinfection, were also wanted to learn more about the new
February (roughly a week later than most
widely published, simply adding weight to banknotes. Each day people were
other companies in the industry) – from a
the story, with the result that cash – mainly looking forward to the next ad to see
high of SEK 398 reaching a low point of
banknotes but also coins – is widely seen which animal we had put into the
SEK 158 on 23 March, a fall of 60.3%,
as a means of spreading and catching the spotlight. And the public started asking
before recovering to end the period at
virus and so unsafe to use. for the next teaser animal, sending in
SEK 191.
suggestions to us with arguments for
Prosegur’s share price, like that of Loomis, Central banks have been too slow to
their favourite animal.
also fell from around 19 March. Its high reassure the public that cash is no less safe
than other products or surfaces with which This was indeed one of the most
point in March just prior to the fall was
people interact on a daily basis. And some effective marketing strategies that we
€3.91 and its low point €2.03, a fall of 48%,
have been actively promoting cashless could have used. It worked very well
despite releasing encouraging results for
alternatives. Meanwhile the industry – albeit – and an innovative and creative way
2019 (see page 4).
now coming to the defence of cash – has to show that the CBA also has normal
In the period, Prosegur’s market value people as its staff!.
also been too slow and too fragmented in
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.
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
A: Yes, very much so! We see this as an
spectrum and provides us with a much
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
A: I have personally been working in this
coronavirus, the OC43 which comes
Henri Rosset. field for 15 years and I have constantly
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.
How does your solution break this cycle particular, Bioguard treatment has been
Q: How confident are you in the
for banknotes? tested to demonstrate its effectiveness
performance of Bioguard Enhance?
against the bacteria responsible for carrying
A: Well, all viruses die naturally on A: We are scientists and look at the results
plague and cholera.
banknotes, like any other inert material. in an objective way and that is why we are
What Bioguard Enhance does is to Q: Where banknotes are circulating fast,
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
on Bioguard Enhance measured the A: Good question! We have experimented
with detailed protocols in the field of
remaining viruses that survived after five with the components in our Bioguard paper
pathogen testing in the USA and so our lab
hours on both a regular PVOH (polyvinyl for many years with papers stored in normal
test results are credible and robust.
alcohol) paper sample and a paper sample conditions. Of course, when banknotes
become unfit and severely soiled through We believe, given their similarities in
treated with Bioguard Enhance. On the
circulation it increases their weight because structure (they're both enveloped viruses),
untreated PVOH paper, 92.4% of the
of the accumulated dirt and the anti- that it is logical that all coronaviruses and
viruses had died after five hours, while on
microbial protection can be reduced as any H1N1 influenza type viruses will react
the sample treated with Bioguard Enhance
other paper property would be. This is why similarly to this treatment. For H1N1
more than 99.9% of the viruses were
Bioguard Enhance was developed in order influenza type viruses, tests are ongoing.
destroyed. This means that the remaining
to ensure the optimisation and long-lasting This is as far as we can go. Nobody can
amount of the virus is 100 times less than it
impact of the inherent properties. tell you from what virus the next pandemic
would otherwise have been.
will spring. What we think is that the
By accelerating the destruction process, We therefore recommend Bioguard
banknotes would be more protected with
Bioguard Enhance effectively diminishes Enhance as a combination of a paper and
this treatment and less able to contribute to
the probability of contamination through varnish to give protection throughout the
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 RECORDWindows 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.
TECHNOLOGY NEWS | VOLUME 18 – NO 3 | MARCH 2020 11You can also read
