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OBERTHUR BANKNOTES, HIGH-TECH DAILY COMPANIONS

28 December 202015 January 2021 Business Business Matters



WHILE THE PRODUCT MAY BE ONE OF THE OLDEST IN THE WORLD, FEW ARE THE SUBJECT OF
SUCH TECHNOLOGICAL PERFECTING.

The banknotes in our purses and wallets are chock-full with technology, mixing
graphics with security markers, and art with science. Oberthur Fiduciaire, one
of the world’s leaders in banknote production, has accepted to lift the veil on
the highly secretive industry.


HOW HIGH-TECH ARE BANKNOTES?

Banknotes may look like simple pieces of paper which have been spat out by some
high-tech printer, but they are anything but that. They are subjected to
permanent review, both upstream and downstream, to ensure their condition and
integrity. Upstream, companies like Oberthur Fiduciaire are constantly
developing new graphic designs which make genuine banknotes easy to identify for
lawful economic agents and difficult for counterfeiters to copy. Close scrutiny
of these banknotes will reveal a large share of these security features, such as
the Starsheen (security ribbon), Labyrinth (complex design) and Fluochrom
(security ink) patents. Specialized equipment, which financial institutions
have, will reveal additional ones, invisible to the naked eye. And as an
illustration of the highly responsive nature of the R&D departments, Oberthur
designed a new banknote treatment process, named Bioguard, which depletes a
viral smear’s survivability on the substrate, in the wake of the Covid pandemic.
Currency specialist Arthur Friedberg writes: “The trademarked Bioguard Enhance
process was developed in conjunction with Biological Consulting Services, a U.S.
based lab that is said to be a leader in the field of pathogen analysis. It is
applied in combination both as a paper treatment, and as a varnish after
printing. According to the firms, tests at a U.S. laboratory showed that in both
cases, a coronavirus sample that is known to affect humans, OC43, was wiped out
with near total efficiency.” Chances of viral contamination through currency
were already low before the coronavirus crisis, they are now virtually
non-existent.


OBERTHUR FIDUCIAIRE, THE FRENCH TOUCH

Oberthur Fiduciaire operates on several markets, but with common technologies.
The French engineering firm is not a banknote producer: it is a secure printer.
Its ability to print documents, banknotes or others, at a level of detail high
enough to guarantee authenticity, means central banks and governments call to
order anything from currency to identification documents. Any such items, which
must be protected from tampering, forging or any other type of unlawful
alteration, require so much technology that only companies like Oberthur, which
has been perfecting its art for over a century, can provide them. Art, indeed,
is mixed with tech, in Oberthur factories, as Ideals business blog reports:
“Printing banknotes is just not a singular stuff but a culmination of a number
of functions – in each of which the firm seems to have gained expertise in. At
the heart of banknote printing at Oberthur Fiduciaire is the combination of art
and technology which is also regarded as the central challenge in the exercise.
The French firm has acquired very specific know how and a high level of
technical knowledge of the processes”. Oberthur Fiduciaire also keeps in mind
that its expertise is not only technical. Banknotes are cultural markers, and
commonly bear symbols of unity and pride for the people who use them. When a new
type of currency is released, it will immediately blend into the collective
consciousness and become a part of daily lives. All adults today remember, with
a certain amount of fondness, what banknotes looked like when they were children
and their grandparents would discreetly hand one to them. Currency will
typically display famous authors, public figures or architectural landmarks
which embody national unity. Oberthur’s most recent production, the Peso notes
for the Bank of Uruguay, displayed a national hero, Arthur Friedman adds: “The
50-peso note shows José Pedro Varela (1845 to 1879), a sociologist, journalist,
politician, and educator. As a result of his efforts, Uruguay adopted free,
compulsory, and secular education in 1876. The next year, it was because of him
that Uruguay established the 1877 Law of Common Education, which continues to
influence the nation today.” Euro banknotes, which Oberthur Fiduciaire has
produced in vast numbers, were a good example of the symbolic potency of
banknotes. They turned a political project into a daily reality: before Euro
notes were crumpled in pockets and wallets, the European dream was simply an
idea on paper.


WHAT ABOUT FUTURE TECHNOLOGIES?

Research and development also focuses on future ways to produce banknotes, to
anticipate the needs to come. Plastic banknotes have been attempted, as an
alternative to cotton paper, and even distributed in some countries. But the
innovation has not caught on, as its overall performance remains below that of
traditional banknotes. In simple terms, the technology for plastic banknotes is
simply far from ready. Printing onto plastic is considerably more difficult than
on the natural substrate, and the notes have performed poorly in hot countries.
Forbes Dave Keating also sheds light on how the environmental claims of plastic
banknotes have raised doubts: “A new study has put those claims in doubt. A
side-by-side comparison of polymer versus paper bank notes by Evergreen Finance
London, using data from the Bank of England and information on cash manufacture
and usage the British Retail Consortium, has found that the new polymer five
pound notes release 8.77kg of C02, almost three times more than previous paper
notes.” It will therefore probably be several decades before the use of plastic
banknotes becomes the standard.

Given the necessarily secretive nature of the industry, currency industrials
seldom step into the public light to show their worth and state their societal
value. And yet, their role is crucial. Physical currency underpins the economy,
making sure our economic daily lives can carry on, regardless of the situation,
given their non-dependency on infrastructures. They also guarantee our
much-loved yet threatened privacy by enabling operations to be realized without
prying eyes. Finally, by being near impossible to forge, they maintain the
quality of “the oil in the engine”, the fundamental element of any economy:
TRUST.


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