Euro Banknotes Research Articles

Banknote Identification Through Unique Fluorescent Properties

The use of printed banknotes is widespread despite cashless payment methods: for example, more than 27 billion euro banknotes are currently in circulation, and this amount is constantly increasing. Unfortunately, many false banknotes are in circulation, too. Central banks worlwide are continuously striving to reduce the counterfeiting. To fight against the criminal practice, a range of security features are added to banknotes, such as watermarks, micro-printing, holograms, and embossed characters. Beside these well-known characteristics, the colored fibers inside every banknote have strong potential as a security feature, but have so far been poorly exploited. The mere presence of colored fibers does not guarantee the banknote genuineness, as they can be drawn or printed by counterfeiters. However, their random position can be exploited to uniquely identify the banknote. This paper presents a technique for automatically recognizing fibers and efficiently storing their positions, considering realistic application scenarios. The classification accuracy and fault tolerance of the proposed method are theoretically demonstrated, thus showing its applicability regardless of banknote wear or any implementation issue. This is a major advantage with respect to state-of-the-art anti-counterfeit approaches. The proposed security method is strictly topical, as the European Central Bank plans to redesign euro banknotes by 2024.

Analysis of Cash Usage, Preferences and Perceptions on Euro Banknotes of the Maltese public

Analysis of Cash Usage, Preferences and Perceptions on Euro Banknotes of the Maltese public

Evaluation of batch mesophilic anaerobic digestion of waste Euro banknotes for methane Production: Preliminary studies and kinetic approach

The European Central Bank is striving to find environmentally friendly alternative methods of waste disposal. In 2020, it decided to end the disposal of Waste Euro Banknotes (W€B) in landfills and planned to use them for recycling and/or energy recovery. Despite being recognized as an effective tool in a circular economy model, there are no reported studies on the use of W€B as a substrate in anaerobic digestion (AD). Thus, the aim of this research was to assess the viability of W€B to be converted into high-value-added energy products (mainly methane) through AD. W€B (€10 and €20 denominations) provided by the Bank of Spain were used. Biochemical methane potential (BMP) tests of pre-treated (grinded) and untreated W€B were assessed at mesophilic temperature. The ultimate methane yield was considerably higher for pre-treated W€B (334 ± 23 NmL CH4 g VS-1added) than for untreated W€B (297 ± 14 NmL CH4 g VS-1added). The Logistic or Sigmoidal kinetic model adequately fit the experimental data and allowed for obtaining the kinetic parameters of each case studied. In this sense, an increase of 22.4 % in the maximum methane production rate (Rmax) was observed for the pre-treated W€B (52.5 ± 0.9 mL CH4 (g VS·d)-1 compared to the untreated W€B (16.2 ± 1.8 mL CH4 (g VS·d)-1). According to the obtained results, AD may be a good alternative for the energetic valorization and recycling of W€B.

Efficient, Neutral, Hyperbolic: Building the European Central Bank

The building of the European Central Bank (ECB) in Frankfurt am Main is the result of a complex process that intersects and amplifies a set of issues concerning the relation between architecture and power at the turn of the millennium. From the initial competition, launched in 2002, to the inauguration of the tower designed by Coop Himmelb(l)au, this case highlights the reluctance, on the part of the institution, to use architecture to project power and showcase its mission. This hesitancy relates to the ECB's particular status as a supranational institution, operating between multiple national identities. While assuming an increasingly political role, the bank tried to present itself as a neutral, technical body, responding to a model of depoliticized governance. All that matters is what the institution does, not what it is. On a parallel level, this functionalist outlook aligned with a contemporaneous shift in architectural practice and thought. The traditional concern with representation was challenged by an evolving notion of materialism, which set aside questions of meaning in favor of questions of performance. All that matters is what buildings do. From this perspective, the performance of the technical infrastructure is believed to be the primary source of meaning, for both the institution and the architecture that housed it. The unfolding of the ECB project, however, revealed the limitations of such approaches. Given the importance of the bank within the governance of the European Union during a time of economic crisis, the building site became the stage for multiple symbolic rituals and forced a difficult reflection on the image of the European community. Despite the efforts to blend in and neutralize architecture, as in the case of the euro banknotes, the building process pushed the ECB to start addressing its unique political dimension, beyond reductive notions of technical efficiency.

MBDM: Multinational Banknote Detecting Model for Assisting Visually Impaired People

With the proliferation of smartphones and advancements in deep learning technologies, object recognition using built-in smartphone cameras has become possible. One application of this technology is to assist visually impaired individuals through the banknote detection of multiple national currencies. Previous studies have focused on single-national banknote detection; in contrast, this study addressed the practical need for the detection of banknotes of any nationality. To this end, we propose a multinational banknote detection model (MBDM) and a method for multinational banknote detection based on mosaic data augmentation. The effectiveness of the MBDM is demonstrated through evaluation on a Korean won (KRW) banknote and coin database built using a smartphone camera, a US dollar (USD) and Euro banknote database, and a Jordanian dinar (JOD) database that is an open database. The results show that the MBDM achieves an accuracy of 0.8396, a recall value of 0.9334, and an F1 score of 0.8840, outperforming state-of-the-art methods.

Forecasting Euro Banknotes in Circulation with Structural Time Series Models in Times of the COVID-19 Pandemic

Forecasting Euro Banknotes in Circulation with Structural Time Series Models in Times of the COVID-19 Pandemic

Microbial Contamination and Survival Rate on Different Types of Banknotes.

In the COVID-19 pandemic context, numerous concerns have been raised regarding the hygienic status of certain objects we interact with on a daily basis, and especially cash money and their potential to harbor and transmit pathogenic bacteria. Therefore, in the present study, we analyzed different currency bills represented by British pounds (5 £, 10 £ and 20 £), Romanian lei (1 leu, 5 lei and 10 lei), U.S. dollars (1 $, 5 $ and 10 $) and Euros (5 €, 10 € and 20 €) in order to evaluate the bacterial survival rate and bacterial adherence. We used five reference microorganisms by American Type Culture Collection (ATCC, Manassas, VA, USA): Staphylococcus aureus ATCC 6538, Escherichia coli ATCC 8739, Enterococcus sp. ATCC 19952, Salmonella enterica subsp. enterica serovar Typhi ATCC 6539, and Listeria monocytogenes ATCC 7644. Microorganisms were selected in accordance with the criteria of prevalence, pathogenicity, opportunism, and incidence. However, Maldi-TOF analysis from samples taken from the banknotes revealed only a few of the common pathogens that are traditionally thought to be found on banknotes. Some of the most important factors for the survival of pathogenic agents on surfaces are the presence of organic matter, temperature and humidity. Our data showed that Salmonella enterica survived 72 h on every banknote tested, while L. monocytogenes tended to improve persistence in humid conditions. Survival rate is also influenced by the substrate composition, being lower for polymer-based banknotes especially for Salmonella enterica, Listeria monocytogenes and Enterococcus sp. The adherence of bacterial strains was lower for polymer-based banknotes British pounds and Romanian Leu, in contrast to the cotton-based U.S dollars and Euro banknotes. The risk of bacterial contamination from the banknote bills is high as indicated by both a strong survival capacity and low adherence of tested bacteria with differences between the two types of materials used for the tested banknotes.

Centralized archiving and recordkeeping in a new institution: the European Monetary Institute and its Archives 1994–1998

In 1994, the European Monetary Institute (EMI) was established. Based first in Basel (Switzerland), and subsequently in Frankfurt am Main (Germany), the newly created institute was one of the most structurally significant outcomes of the 1992 Treaty of Maastricht and was intended to shepherd the creation of a new currency for the European Union - the Euro banknotes and coins - as well as to prepare for the establishment of the future European Central Bank (ECB). Unlike many other new institutions, recordkeeping was considered from the organization’s inception. The initial approach adopted was highly centralized and was deemed unsustainable in light of the experience of a fast-growing institution. While unsuccessful initially, the experience provided many insights and avenues of theoretical development when new recordkeeping functions were instituted upon the establishment of the ECB in 1998.

Sustainable green strategy for recovery of glucose from end-of-life euro banknotes

Usually, Euro banknotes are made from cotton substrates and their waste is disposed of in landfill or is incinerated. In order to valorize the end-of-life euro banknotes (ELEBs), the substrates were used in this research for cellulase production via submerged fungal fermentation (SFF), and the resultant fungal cellulase w s used in ELEBs hydrolysis process for extraction of glucose. The experiments were started by exposing the ELEBs to different types of pretreatments, including milling process, alkali (NaOH/urea solution), and acid leaching to remove any contamination (e.g. dyes) and to decrease the crystallinity of cellulose (the main element in cotton substrate) thus increasing the degradation rate during the fermentation process. The effect of pretreatments on the morphology and chemical composition of ELEBs was observed using Scanning Electron Microscope and Energy Dispersive Spectrometry. Afterwards, Trichoderma reesei-DSM76 was used for cellulase production from the treated ELEBs with high cellulase activity (12.97 FPU/g). The resultant cellulase was upscaled in a bioreactor and used in ELEBs hydrolysis. Finally, the results showed that the optimized pretreatment methods (milling followed by leaching process) significantly improved the cellulase activity and glucose recovery, which was estimated by 96%. According to the obtained results, the developed strategy has a great potential for conversion of ELEBs into a glucose product that could be used in biofuels and bioplastics applications.

Foreign Demand for Euro Banknotes

In order to understand why there is a continuous increase in euro banknote circulation even though the use of cash for transactions is decreasing in the euro area – a phenomenon known as the paradox of banknotes – the members of the Overseas workstream of the Eurosystem Research Network on Cash (EURECA) have conducted a study on the foreign demand for euro banknotes. The results of this study are based on desk research using data collected in the Eurosystem and from other organisations, and using both proven and innovative techniques. JEL Classification: E41, E47, E49, E59, F24

Catch Me (If You Can): Assessing the Risk of SARS-CoV-2 Transmission Via Euro Cash

In the light of fears that the SARS-CoV-2 virus might be transmitted via cash – fears that were stoked by statements in the media and from public authorities – this paper aims to address the following issues: (1) to provide a descriptive account of the change in the circulation of euro banknotes and the use of cash in transactions during the pandemic; and (2) to assess the survivability of the virus on cash and the potential transmission risks. The pandemic has caused a significant increase in demand for cash as a store of value but a decrease in the use of cash in transactions. Although citizens reported using cash less in transactions partly out of fear of infection, research confirms that the risk of the virus being transmitted by banknotes and coins is very low. This supports the findings from the scientific community concluding that SARS-CoV-2 mainly spreads via respiratory fluids and airborne transmission, and that surfaces play a very minor role. JEL Classification: I10, I12, E41, E58

Modelling currency demand: the case of the euro

Liquidity management is a key mission of a central bank. In particular, the adequate provision of banknotes requires the understanding of what drives currency demand. The challenge is even bigger in the case of the European monetary union where the euro continues to develop into a well-established currency outside borders. In this respect, a novel indicator is proposed to reflect foreign demand developments. Moreover, besides the usual set of determinants, variables covering financial and economic policy uncertainty are also taken into account. The full denominational breakdown of banknotes is considered so as to unveil the heterogeneous role played by the several drivers. It is found that external demand is relevant for large denominations and uncertainty also matters for cash demand. Furthermore, the recent ECB announcement of the end of issuance of the largest denomination banknote led to a reduction in the overall demand for euro banknotes.

Finding counterfeited banknotes: the roles of vision and touch

Central banks incorporate various security features in their banknotes to enable themselves, the general public, retailers and professional cash handlers to detect counterfeits. In two field experiments, we tested central bank counterfeit experts and non-experts (the general public) in their ability to detect counterfeited euro banknotes. We varied exposure duration and perceptual modality (sight, touch or both). The counterfeit banknotes were actual counterfeits taken out of circulation. Experiment 1, in which participants only viewed the banknotes, showed that experts did reasonably well in detecting counterfeits even when exposure duration was limited to 500 ms. Non-experts did not reach the criterion for decent performance, marked by d’ = 1.25, although they did perform above chance. In Experiment 2, participants could both see and touch the banknotes, which resulted in better performance especially with longer exposure durations. The main finding of the current study is that visual information mostly impacts the decision-making process during the first glance, whereas tactile information increasingly aids performance as it continues to be accrued over time. Implications for the design of security features of new banknotes are discussed.

Detection of cocaine on euro banknotes; Development of a practical approach for the interpretation of suspect cases

The presence of traces of narcotics, particularly cocaine, on banknotes in circulation is a known and widespread fact in all countries. While linked to consumption and trafficking (primary contamination), their spread is due to direct contact with other banknotes during machine counting and cash financial transactions. The mere detection of traces of cocaine on a sample of banknotes is therefore not sufficient evidence to establish the banknote's illegal origin. Increasing levels of contamination are recorded close to (in terms of both place and time) the first direct contact with the substance. The analysis must thus be able to demonstrate that the concentration of narcotics on the banknotes is significantly higher (statistically) in terms of value and frequency than would be expected from background noise alone. Even in that event, however, this evidence has to be substantiated with additional confirmations linking banknotes to the person and this latter to drug trafficking and/or dealing. In general, an in-depth and systematic analysis of all seized banknotes to search for traces of narcotics is not only prohibitive in terms of cost, but also unnecessary. If the sampling procedure is respected, the Swiss Federal Supreme Court actually recognizes IMS (ion mobility spectrometry) as a lawful method for checking the degree of banknote contamination, as well as all the statistical conclusions that can be drawn from it. In special cases, the prosecutor may require confirmation of IMS results by a laboratory test (liquid/gas chromatography-mass spectrometry). Using a non-destructive sampling procedure (suction on swabs) we determined the presence of cocaine on 978 circulating euro banknotes, randomly collected at 5 swiss customs offices, with IMS and LC–MS/MS in order to establish a normal (background) contamination level. A significant proportion (46.4%) of the euro banknotes analysed by LC–MS/MS had cocaine concentrations above the quantification limit (1 ng/swab). However, the extent of contamination is a determining factor: 94.6% of the banknotes in circulation have cocaine concentrations equal to or less than 10 ng/swab and only 3.4% have cocaine concentrations above 20 ng/swab. By comparison, only 27.3% and 13.4% respectively of the seized banknotes (2 real cases) had cocaine concentrations equal to or less than 10 ng/swab, but 63.5% and 86.7% respectively had cocaine concentrations above 20 ng/swab. We also describe a Komolgorov-Smirnov test model used to determine the presence of an "abnormal" level of contamination relative to the reference banknotes (banknotes in circulation or background noise) effectively and within realistic practical and theoretical frameworks. This model provides a quantifiable and statistically significant result that not only simplifies data interpretation, but also facilitates admissibility as forensic evidence in proceedings. When applied to the sized banknotes using both IMS and LC–MS/MS data, we obtain fully consistent and sounding conclusions.

THE ECB AND € E‐BANKNOTES – Could the ECB Issue an Electronic Equivalent of Paper-Based Euro Banknotes? Under Which Conditions Might Such ʹelectronic Banknotesʹ Have Legal Tender Status? Study Prepared Under the 2020 ECB Legal Research Programme 2020 (Topic 2)

This research paper examines whether the European Central Bank (ECB) is entitled de lege lata to issue an electronic equivalent of paper‐based euro banknotes (e‐banknotes) and, if so, under what conditions such e‐banknotes might have legal tender status. To this end, Part 2 sets the stage by discussing the reasons that might motivate or even compel the ECB to issue an e-banknote and by analyzing whether an e‐banknote is a banknote by reference to general principles of law and financial practices. Part 3 examines which monetary policy objectives and tasks could be better fulfilled if an e‐euro were issued or, conversely, whether non‐issuance could in the future impair the fulfillment of the ECB’s mandate. Subsequently, Part 4 analyses the constitutional framework that empowers the ECB, within certain clear limits, to pursue the objectives set. This includes particularly the interpretation of the term ‘banknotes’ in Article 128 TFEU as well as the content and scope of selected basic tasks set out in Article 127 TFEU and mirrored in the Statute of the European System of Central Banks (ESCB) and of the ECB. The results are then weighed against the potential interests of third parties that could be affected by an e‐euro. Part 5 proceeds by discussing the design features that a functional equivalent of a paper banknote can and must exhibit in order to meet the previously defined objectives and constitutional limits. Part 6 explores the issue of architecture, i.e. the possible models of issuance. Part 7 concludes.

Machine Learning-Based Fast Banknote Serial Number Recognition Using Knowledge Distillation and Bayesian Optimization.

We investigated a machine-learning-based fast banknote serial number recognition method. Unlike existing methods, the proposed method not only recognizes multi-digit serial numbers simultaneously but also detects the region of interest for the serial number automatically from the input image. Furthermore, the proposed method uses knowledge distillation to compress a cumbersome deep-learning model into a simple model to achieve faster computation. To automatically decide hyperparameters for knowledge distillation, we applied the Bayesian optimization method. In experiments using Japanese Yen, Korean Won, and Euro banknotes, the proposed method showed significant improvement in computation time while maintaining a performance comparable to a sequential region of interest (ROI) detection and classification method.

Affective perception of Euro banknotes: cognitive factors and interindividual differences

Money can be a tool to achieve a wide range of goals in everyday life. Different studies have reported that both the mere exposure to money and its use as a reward can determine cognitive and social effects. Nevertheless, little is known about the basic affective perception of Euro banknotes. Thus, in the present study we aim to assess differences in valence, arousal and familiarity evaluations of banknote pictures (from 5 to 500€) by taking into account gender, socioeconomic status and Love of Money (LoM) score, which measures the subjective attitude toward money, in a sample of participants. We found that valence and arousal increase with the nominal value of the banknotes, and that the relationship between these affective scores and the nominal value appears to be logarithmic (Weber's law) rather than linear. High value banknotes were evaluated as pleasant, highly arousing, and less familiar. Low value banknotes instead were evaluated as more familiar, less arousing and neutrally valenced. Finally, we found that valence and arousal evaluations are mainly influenced by the LoM score of our participants. Instead, gender and economic condition influenced only arousal scores. These findings suggest the importance of deepening the study of these variables to shed light on money-related biases and abnormal economic behaviors.

Joint Banknote Recognition and Counterfeit Detection Using Explainable Artificial Intelligence.

We investigated machine learning-based joint banknote recognition and counterfeit detection method. Unlike existing methods, since the proposed method simultaneously recognize banknote type and detect counterfeit detection, it is significantly faster than existing serial banknote recognition and counterfeit detection methods. Furthermore, we propose an explainable artificial intelligence method for visualizing regions that contributed to the recognition and detection. Using the visualization, it is possible to understand the behavior of the trained machine learning system. In experiments using the United State Dollar and the European Union Euro banknotes, the proposed method shows significant improvement in computation time from conventional serial method.

Real-time Automatic Calculation of Euro Coins and Banknotes in a Cash Drawer.

A very interesting and useful complement to classical cash-registers is presented in this paper, coming up with a real-time auto-counting solution for the money inside a cash drawer. The system allows knowing not only the total amount of money but also how many coins and banknotes there are of each value. The embedded solution developed has been intended to become a low-cost solution, allowing better control over the money and helping both owners and workers in the establishments. By using this system, new utilities including automatic final balancing, instant error handling when making operations, and the lack of certain types of banknotes or coins inside the drawer or the excess of some in a certain compartment, could be implemented. Coins-counting solution is based on their weight, and small individual scales made by load cells have been integrated in each coin compartment. With respect to the banknotes, an innovative alternative based on the electrical properties of capacitors is presented. Additionally, considering the relevance of interoperability in today’s systems, a Bluetooth module has been integrated into the system, allowing for data to be accessed remotely from any smartphone, tablet or computer within the range of the module. In this work, an Android application to both control and interact with the system has also been designed.

High correlation-based banknote gradient assessment of ensemble classifier

This research presents a client and server-based mobile application for recognition and authentication of banknotes; the system extracted the shape context (SC), Scale Invariant Feature Transform (SIFT), gradient location and orientation histogram (GLOH), and Histogram of Gradient (HOG). It then reduces the feature set using Principal Component Analysis (PCA), Bag of Words and proposed two-dimension reduction approach based on low variance and high correlation filter. The classification was done using a 2-fold Weighted Majority Average (WMA) Ensemble technique with MPLNN and MCSVM as base classifiers. The application was built using Unity 3D; it was tested on Naira, USD, CAD and Euro banknotes and the experimental results proved that the implemented feature vector and the proposed feature reduction and classification technique presented the best results and with promising recognition accuracy, detection rate, and processing time.