Form FR 3054d FR 3054d the Currency Quality Survey

Confidential
Banknote Handling Industry Survey
By the Central Bank Cash Machine Group (CBCMG)
As you may be aware, in the past, the Bureau of Engraving and Printing has been an auxiliary
participant in CBCMG activities. In July 2009, the Federal Reserve formally joined the
CBCMG, and the BEP will continue to participate. As members, we share the goal of the
CBCMG to ensure that future bank notes can be reliably authenticated using automated cash
handling equipment. To that end, we are interested in facilitating communications with the
manufacturers of bank note handling equipment in general and with your company in particular.
The purposes of this Survey are to: (1) determine discussion topics of mutual interest (Planning
Section); (2) identify emerging technical challenges involved in authenticating and processing
bank notes (Technical Issues Section); and (3) evaluate your interest in discussing ways to
improve new note introduction and circulation processes (Business Issues Section).
Your Name / Title:
Company name:
Section 1: Planning
1. Under a non-disclosure agreement, would your company be interested in participating in
bi-lateral meetings with US members of the CBCMG? Please note that the information
gathered at such meetings would not pass outside the participating central banks and BEP.
Y
N
Comments:

2. During bilateral meetings, would you be interested in discussing the following topics?
Y
N
(a) Update on features to authenticate banknotes
(b) Update on current authentication technologies
(c) Issues related to fitness standards
(d) Techniques for fitness sorting
(e) Issues related to substrates (e.g., currency paper)
(f) Issues related to quality control
(g) Development of different types of banknote processing machines
(h) Challenges for machine authentication/fitness sorting
(i) Potential new technologies for machine processing
(j) Potential new machine readable features
(k) Upcoming new note introductions
(l) Other:
Comments:

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3. On which issues could we communicate to you that would benefit you most?
Y
N
Y N
(a) Note specifications
(b) Future plans
(c) Note quality
(d) New technologies
(e) Other:
Comments:

4. If your company would like to communicate with us, is technical information coming from
your:
Local office ?
Other location?

Head Office ?

How often?

Please provide two contacts:
Name:
Title:
Address:

Tel:
Fax:
Email:

Name:
Title:
Address:

Tel:
Fax:
Email:

Section 2: Technical Issues
In this section, we aim at identifying emerging issues confronting your industry and at
identifying areas of collaboration for the next generation of bank notes. Please note that your
answers will serve as a basis for the bilateral meetings.
We would like to better understand the nature of your business to facilitate discussions and
understand technical requirements.
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1. We have segmented the market into the following groups. Please indicate whether this is an
appropriate segmentation, and if not, please suggest proper terminology on the line below.
Y
N
(a) Single Note Scanner
(validation only)

(b) Automatic Note Acceptors

(acceptance and validation)

(c) Automatic Note Dispensers (ATM’s) (counting and dispensing only)

(d) Note Recyclers

(acceptance, validation,
counting and dispensing)

(e) Counters and Sorters (Back Office)

(counting, sorting and validation)

(f) High Speed Processors

(high accuracy multi-detector
counting, sorting, validation
and packaging)

Comments on market segments:

2. In general terms are you experiencing any problems with machine authentication/processing
caused by:
Y
N
(a) Loss of efficacy of a feature due to counterfeiting)?
Comments:

Y

N

(b) Loss of efficacy of a feature due to wear in circulation)?

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Y

N

Y

N

Y

N

Y

N

Y

N

(c) Public knowledge of security features (IR, magnetics…)
Comments:

(d) An inadequate number of machine readable features?
Comments:

(e) Inadequate design / location of the features?

(f) Note production variability?
Comments:

(g) Other factors?
Comments:

3. When accommodating an upgraded banknote or a new currency design, what have been your
greatest technical challenges?

4. In what way can banknotes evolve to alleviate these challenges?

5. In recent years, have you changed detection specifications or technologies:
Y

N

(a) to look at any feature in a more sophisticated way?
If yes, in what way?

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Y

N

(b) to look at another feature in banknotes?
If yes, which feature?

6. Is your company developing or considering next generation technologies for banknote
authentication:
Y
N
(a) for commercial reasons?
Y

N

(b) as a result of counterfeiting?
If yes, what type of machine-readable features could be useful in the next generation of
currency notes?

Any other comments?

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Section 3: Business Issues
In this section, we look to evaluate your interest in discussing ways to improve new note
introduction processes. Technology topics/issues will be addressed in bilateral meetings.
1. Would your company be interested in participating in an industry-wide gathering to
exchange experiences gained during the introduction of new currency notes? Y
N

If yes, would your company be willing to discuss its experience by preparing a presentation
on the process involved?
Y
N
Comments:

2. Are there other issues you feel could be usefully discussed at an industry-wide gathering?
Y
N
If yes, which ones:

3. Are the in-house / on-site preview sessions of new note-design helpful?
Y

N

4. Are current test-deck designs with variations helpful to you to develop your algorithm? The
CBCMG has already established a regular biannual conference with your industry. Outside the
interactions already established with BEP and CTO, are there other ways that we can discuss
topics with your company?
Comments:

Any other comments?

Thank you for taking the time to answer these questions.

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