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Banknote Industry News - Nov. 11, 2021

Tuesday, November 16, 2021

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Nov. 11, 2021

Overview:

Announcement

1. CPS: Award for sorting machines for the De Nederlandsche Bank

Source: Link to Source 1, Link to Source 2, BIN

Cash Processing Solutions Ltd (CPS) has been awarded a framework agreement to supply multiple High-Speed Banknote Sorting Machines to the De Nederlandsche Bank (DNB) – the Central Bank of the Netherlands.
The contract was won through a tender process, with CPS being selected to design, manufacture, install and commission multiple CPS 7000i™ High Speed Banknote Sorting Machines during 2022 and 2023
CPS and the Central Bank of Netherlands have a partnership for more than 20 years.
The CPS 7000i machine is an intelligent, intuitive and innovative solution providing secure, efficient and cost-effective high-speed, high-volume banknote processing. The 7000i can process up to 120,000 banknotes per hour (2,000 banknotes per minute).

2. Germany, Bundesbank: Cash symposium - Facts / Figures

Source: Source 1, BIN

Extract of the "Cash Symposium conducted by the German Bundesbank - Speech by Mr. Dr. Weidmann:

Germany:

According to a survey (by GERMAN Bundesbank carried out in 2020) "cash was the most frequently used option for day-to-day payments, even during the coronavirus pandemic.
Consumers paid in cash 60% of the time at the point of sale, for recreation activities, and in other situations.
Even the generation of digital natives regularly uses banknotes and coins. Of those in the 18 to 24-year-old age bracket, just over half used cash."
Cash is a highly important means of payment for many people who aren’t very tech-savvy, or those with visual impairments.
Wtihin the Euro-Area, around 13.5m adults are unbanked and mostly rely on cash.
40% of banknotes issued in net terms by the Bundesbank are used as a store of value in Germany.
The German Bundesbank is currently working on a new study analyzing the current further trend to increasing online / digital payment due to the onging impact of Corona.
Conclusion Statement by Mr. Dr. Weidmann (Bundesbank): "I am convinced that cash will continue to play an important role in the foreseeable future"

Sweden:

As published and known Sweden is completely contrary, where < 10% of all transactions are being paid in cash. But the following statement was conducted by the Central Bank of Sweden:
"... without cash, payment systems become more vulnerable to technical problems such as powercuts or internet outages.
Against this backdrop, many people see cash as an important back-up alternative, but not essential to everyday life. Yet Stefan Ingves, Governor of the Riksbank, warns that “if cash is needed as a means of payment in a crisis, it must also be possible to use it in normal circumstances”.

3. England: Update information regarding CBDC

Source: Source 1, BIN

Extract of a statement by the Bank of England:

"In 2022, HM Treasury (HMT) and the Bank of England will launch a consultation which will set out their assessment of the case for a UK CBDC, including the merits of further work to develop an operational and technology model for a UK CBDC.
It will evaluate the main issues at hand, consider the high level design features, possible benefits and implications for users and businesses, and considerations for further work."
"No decision has been yet made on whether to introduce a CBDC in the UK"

4. UAE, Indonesia: MoU for digital innovations

Source: Link to Source 1, BIN

The Central Bank of the UAE and the Central Bank of the Republic of Indonesia signed a 'Memorandum of Understanding (MoU)' regarding the co-operation of:
- Digital innovation in payment and financial services to facilitate more efficient and secure transactions
- Cross-border payment systems including retail payments and
- Frameworks of anti-money laundering and combatting the financing of terrorism.