U.S. TREASURY AND FEDERAL RESERVE ANNOUNCE PLANS FOR REDESIGNED NOTES

U.S. TREASURY ^ | June 20, 2002 | Dawn Haley or Rose Pianalto

[Lokibob]

U.S. TREASURY AND FEDERAL RESERVE ANNOUNCE PLANS FOR REDESIGNED NOTES NexGen notes are latest in series to add anti-counterfeiting features In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury’s Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board today announced plans to release the next generation of redesigned notes, with improved security features to deter counterfeiting. The new design, referred to as NexGen, affects the $100, $50, and $20 notes. Circulation of the NexGen series could begin as early as fall 2003 with the introduction of the redesigned $20 note. The $100 and $50 notes will follow in twelve to eighteen months. Consistent with past design changes, the NexGen notes will remain the same size and use similar portraits and historical images to maintain an American appearance. The NexGen designs will include the introduction of subtle background colors. While color is not in itself a security feature, the use of color provides the opportunity to add additional features that could assist in deterring counterfeiting. The introduction of additional colors will also help consumers to identify the different denominations. The new series will retain current security features, including watermarks similar to the portrait and visible when held up to a light, enhanced security threads that glow under ultraviolet light, microprinting, and color-shifting ink that changes color when the note is tilted. The purpose of the currency redesign is to stay ahead of advanced computer technologies used for some types of counterfeiting. According to the U.S. Secret Service, $47.5 million in counterfeit money entered into circulation in fiscal year 2001. Of this amount, 39 percent was computer generated, compared with only 0.5 percent in 1995. The redesign of $10 and $5 notes is still under consideration, but a redesign of the $2 and $1 notes is not included in the plans for the NexGen series. Release of NexGen notes will have no effect on money already in circulation. These notes will co-circulate with older series notes. The U.S. government has never recalled or devalued its currency. As part of the introduction of NexGen currency, the Bureau and the Federal Reserve System are planning an extensive public education effort aimed at informing target industries – such as financial institutions, law enforcement, retail and vending industries – and the general public about the new designs. This effort will encourage people who use U.S. currency to familiarize themselves with the redesigned money so they can easily authenticate currency as genuine. The first initiative of the public education effort is already underway. The Bureau is working with manufacturers of currency-accepting machinery to expedite the development of software and other devices, so vending machines and similar equipment accept NexGen notes. The cooperative effort allows a smooth transition for vending machine owners, mass transit agencies, the gaming industry, and other proprietors that rely on currency-accepting machinery to conduct business transactions. The redesigned currency program is a partnership among the Federal Reserve System, the Department of the Treasury, the Bureau of Engraving and Printing and the United States Secret Service. The Secretary of the Treasury establishes the design and appearance of U.S. currency. Information about the previous redesigned 1996 notes and the history of U.S. currency is available at the Bureau’s website at www.moneyfactory.com.

[Lokibob]

I guess we need to get used to changes in our bills every few years.

[Davis]

More about printing money here...

http://www.atrentino.com/PowerPress.html

[Davis]

More about printing money here...

http://www.atrentino.com/PowerPress.html

[Chancellor Palpatine]

Its overdue.

[yankeedame]

In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury’s Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board today announced plans to release the next generation of redesigned notes..

What? Again?? I thought the current Monopoly Money design was supposed to be anti-forgery. (grunble,grumble) Seems we're not only on our way to becoming a third-world country but our currency is as well.

[Willie Green]

I hope they make them two-ply, softer and more absorbant.
That's all they're gonna be worth.

WTO Nations Mixed About U.S. Tariff Plan

[jdege]

Hey, guys!

Let's use lots of different bright colors!

Just like Monopoly Money!

[WoofDog123]

"What? Again?? I thought the current Monopoly Money design was supposed to be anti-forgery. (grunble,grumble) Seems we're not only on our way to becoming a third-world country but our currency is as well."

In all fairness, since the new 100 was introduced, counterfeit technology has kept pace with the overall exponential ramp in computer tech. This is a problem not encountered in the previous, less frequent security feature additions. Counterfeit bills now routinely pass the pen test....I have yet to see one with a correct thread, but it is only a matter of time till they get that down too and our money can be printed anywhere.

I don't care for the idea of a non-precious metal money in the first place, BUT they have to keep up on this or in 5 years we will be signing for every 100 dollar bill we spend due to the prevalence of near-perfect fakes.

[WoofDog123]

"What? Again?? I thought the current Monopoly Money design was supposed to be anti-forgery. (grunble,grumble) Seems we're not only on our way to becoming a third-world country but our currency is as well."

In all fairness, since the new 100 was introduced, counterfeit technology has kept pace with the overall exponential ramp in computer tech. This is a problem not encountered in the previous, less frequent security feature additions. Counterfeit bills now routinely pass the pen test....I have yet to see one with a correct thread, but it is only a matter of time till they get that down too and our money can be printed anywhere.

I don't care for the idea of a non-precious metal money in the first place, BUT they have to keep up on this or in 5 years we will be signing for every 100 dollar bill we spend due to the prevalence of near-perfect fakes.

[trebb]

Looks like the folks who design the bill readers for change machines can expect some enhanced job security...

[Licensed-To-Carry]

How about using just plain old Gold and Silver coins, like a $20, $50, $100, and $500 gold piece.

[null and void]

Now you're being silly...

[1redshirt]

The Treasury wanted to use a design that represented the currencies true worth

[Lokibob]

The policy is change the currency every 7-10 years.

The $20 was last changed in 1996. That makes it right on track for the 7 year change.

[TheBattman]

Security of the Currency

As technology improves, so does the need to use paperless money - the debit card has grown exponentially, as has the use of credit cards.

Hey, I've got an idea - let's just tatoo a Serial Number across everyone's forehead (or back of thier right hand) to identify consumers and to transact business (I would imagine a microchip implanted in one of those locations would serve as well). Of course, anyone here should see where that's headed....

[for-q-clinton]

What I don't understand is why can't they just forge the older easier to forge money?

We never recall any of our money...I have an old $10 and $20 bill from the 30's it looks kind of like our early 90's money, but it's different and it's still legal tender.

If we're series about this we need to recall the old money when we release the new. Or at least don't let anything 2 generations old be good. So when the nextgen $20 comes out the pre 1996 $20 bill should be traded in within 30 days or it's no good.

[WoofDog123]

"If we're series about this we need to recall the old money when we release the new. Or at least don't let anything 2 generations old be good. So when the nextgen $20 comes out the pre 1996 $20 bill should be traded in within 30 days or it's no good. "

This is a good point. I have wondered the same thing. In the UK, at least some obselete banknotes are quite difficult to redeem, despite the fact they represent the same currency as has been in circulation (now with funnymetal) for a long, long time.

For that matter, I wonder how many of the $1000 and $500 bills sold through numismatic dealers/ebayers, etc are real, since they are all over 65 yrs old and all still legal tender.

[weikel]

Yep their last redesign wasn't exactly an improvement.

[hoosierham]

NexGen is a trademark of somebody in the computer industry : but I suppose the gov't can use it anyway.