News in Brief

Swiss Could Vote on Cash Guarantees

Swiss citizens are likely to vote in a future referendum on whether to enshrine in the constitution the availability of cash, after the launch of an initiative to pre-emptively guard against digital money.

In order for an initiative of the people to go to a national plebiscite it needs 100,000 signatures within 18 months. The group behind the initiative, Mouvement libertaire Suisse (the Swiss Freedom Movement), sees electronic transactions as a risk to freedom because they make surveillance easier, and claims it has already collected 157,000 signatures since launching the campaign at the start of February.

Neither the government nor the Swiss National Bank have voiced an intention to abolish cash. Even so, the initiative highlights how emotive the issue of physical money is in Switzerland. Every inhabitant holds the equivalent of $11,824 in cash, the most in all countries where the Bank for International Settlements collates data.

The referendum, if it is eventually held, will represent a rare instance where money preferences are tested by voters at the ballot box rather than simply through their spending habits.

Coin Aversion Impacts Inflation Fight in Ghana

The Governor of the Bank of Ghana, Dr Ernest Addison, commented about the aversion to coins by Ghanaians during a visit from members of the country’s National Commission for Civic Education (NCCE). Amongst its responsibilities, the NCCE works to educate citizens on their rights and duties, including on currency use – for example, with the cedi redenomination implementation in 2007.

The Governor stated that the aversion toward the use of coins negatively impacts the central bank’s efforts to fight inflation, as vendors round off prices to avoid using coins. He also emphasised the importance of coins as a more durable and less costly to produce alternative to banknotes.

Ghana currently issues seven coins – the 1, 5, 10, 20 and 50 pesewas, and 1 and 2 cedis. The 1 cedi was redesigned last year, and the 2 cedi introduced in 2020 with the intention of phasing out the two banknotes of the same denominations.

EU Further Reduces Proposed Cash Limits

As noted in the December issue of Currency News™, the European Union has announced a set of new directives to limit the amount of cash and crypto transactions in a move, it says, that will crack down on money laundering and terrorist financing.

In that set of directives, the proposed new limit for cash payments was €10,000 in all EU member states. A revised version, however, proposes lowering this threshold to €3,000.

Further to the Council agreeing its position on the anti-money laundering regulation and directive in December, trilogue negotiations with the European Parliament and the Commission are underway in order to agree on a final version of the texts.

New App for Mongolia’s Banknotes

The Bank of Mongolia has a new app to help deter counterfeiting by providing awareness of the banknotes to citizens, including children. The app, in Mongolian and English versions, can be downloaded from iOS and Android operating systems, and includes cognitive information about security features on the banknotes.

The app has three sections where users can learn, put what they learn to use, and test their knowledge. The different features can be viewed by tilting the phone from side to side, moving it up and down against the light and using the UV light on screen.

 According to the Bank, in recent years it has improved its security features to prevent counterfeiting. The app, it says, will provide the public with the necessary information on these features. It warns, however, that while the app enables users to identify and check their banknotes, it does not determine whether these are fake or genuine.

Armoured EVs for Loomis US

Cash handling specialist Loomis is expanding its fleet of electric vehicles (EVs) in the US with the order of a further 150 vehicles from the EV manufacture Xos, adding to the 20 it has already purchased, which have met its performance requirements in terms of safety, range and weight.

The zero emission armoured EVs will be gradually delivered throughout the year, and integrated into Loomis’ fleet in the second half of 2023.

According to Loomis, ‘we have made a commitment to reduce carbon emissions from our business and have set out to lead the transformation in the industry. By significantly increasing the number of EVs in US operations, we are on our way to both reducing our own emissions and helping our customers reach their targets while maintaining our high security standards.’ 

By 2024, Loomis is looking to achieve a 15% reduction in CO2 compared to 2019 levels. Emissions from its vehicles (of which there are 4,000 in the US alone) are one of the main contributors to its carbon footprint, so the armoured EVs are expected to play a critical role in reaching its target.

The company has stated that, as the vehicle fleet is renewed globally, it will continue to invest in electric and hybrid vehicles, as well as switch to lighter and safer vehicles.

BEP Files RFIs for New Features

The Bureau of Engraving and Printing has filed two RFIs to improve ‘counterfeit deterrent features on future’ US currency, specifying that the proposals should have deterrent features that are novel and not otherwise in commercial use of the public domain.’

Both device-assisted and non device-assisted counterfeit deterrent features are being explored.

For non device-assisted technologies, such verification would have to be possible under most lighting conditions. A device-assisted technology would rely on a readily available, inexpensive device, like optical filters, magnifiers, cheap laser pointers, LED flashlights, magnets and smartphones. The features can be applied to the banknote, or incorporated via the substrate or ink.

The US Treasury will review the ‘inherent and relative effectiveness’ of the submitted technologies or materials as a security feature and may test for other factors such durability, compatibility with design and production considerations, environmental complications and other requirements.

The first new note in the next generation of US currency – the $10 - is due to be issued in 2026, with subsequent denominations issued in intervals of two years, culminating with the new $100 in 2034.

The BEP’s deadline for responses to its latest RFIs is 13 March.