New technologies are changing the way we pay for products and services.
Today, we use cash, credit and debit cards, e-payment schemes
and soon maybe also digital wallets on our smartphones.
However, cash is still the most popular means of payment in Germany;
but there is a growing chorus of voices predicting radical change:
That there will be no more cash payments in ten years' time.
Are there not good reasons for arguing that cash does have a future?
And where do our banknotes come from exactly?
The statutory mandate for cash payments has been conferred on the Deutsche Bundesbank.
The Bundesbank is responsible for ensuring that citizens in Germany
always have a sufficient supply of cash at their disposal.
Euro banknotes and coins are the tangible symbol of European integration as,
ultimately, we come into contact with them every day.
Cash is a simple and secure means of payment.
It is also valued by many citizens, as no technology is required
and no personal data disclosed.
The first series of euro banknotes is currently being replaced with the new "Europa series".
Teams of experts from the Eurosystem central banks work together
to make further quality improvements and to stay one step ahead of counterfeiters.
The banknotes we carry every day in our pockets
are a meticulously designed and sophisticated high-tech product.
They are made of cotton fibres, which give the notes their characteristic feel.
This makes them resilient enough to be frequently passed through ATMs
as well as counting and sorting machines.
A modern-day banknote is also designed
to survive even an accidental spin in the washing machine.
The Bundesbank commissions specialist printing works to produce our banknotes.
Inspection teams from the Bundesbank make regular visits to these printing works
to ensure that the highest quality standards are met.
The freshly printed banknotes first have to be transported to the Bundesbank's branches.
Each of these transports is planned in great detail, with security a top priority.
The banknotes are initially stored in the vaults of the Bundesbank's branches.
Here they remain in one of the securest locations in Germany
until they are needed.
Despite the increasing popularity of cashless payment methods,
the demand for euro cash continues to rise.
The reasons behind this are its great popularity as a means of payment
and the growing need for cash as a store of value
both in Germany and abroad.
The Bundesbank regularly determines the demand for cash
to make sure that the needs of citizens and businesses alike are met.
Cash containers are prepared at the branches in line with the out-payment demand.
These containers are transported to the commercial banks
by private cash-in-transit companies.
The counter value is debited to the accounts of the commercial banks -
which then bring the cash into circulation.
Cash is essential for the general public's trust in our currency.
It is not just a practical and secure means of payment;
for citizens, cash is also minted freedom.
And, not least, cash also provides protection in crisis and disaster situations.
In the event of a major cyberattack or a nationwide power failure,
cash would be the only functional means of payment.
There are many situations in which German citizens like to use cash.
They want to be able to pay for their purchases or a gift quickly and easily,
and they value the fact that children can learn how to handle money
more easily by paying in cash.
Cash can be used to settle transactions on a delivery-versus-payment basis.
Neither the buyer nor the seller of an item has to pay or deliver upfront.
Cash also helps many people to keep a better overview of their spending.
At the end of a working day,
businesses pay in their takings at the commercial banks.
The commercial banks, in turn,
forward any surplus cash stocks to the Bundesbank's branches.
A banknote that is used as a means of payment in Germany
is checked by the Bundesbank twelve times a year on average.
This means that around 15 billion banknotes are checked each year for authenticity
and their state of wear and tear.
If these banknotes were all placed side-by-side in one long line,
they would circle the globe almost 50 times.
In order to handle such a gigantic task,
the Bundesbank uses highly specialised banknote processing machines.
Each of the 15 billion banknotes is checked by one of these machines.
Banknotes that have passed the check are bundled according to their denomination
and then ejected by the machine.
Banknotes that do not meet the quality standards are immediately destroyed.
In order for the German economic cycle to run smoothly,
a sufficient supply of high-quality euro cash is essential.
By means of our nationwide branch network our specialists ensure
that this supply is maintained at all times.
Day after day they work on keeping the cash cycle secure and efficient.
Occasionally, suspicious banknotes may appear.
In such cases, the police authorities are informed
and the suspicious note is forwarded to the Bundesbank's counterfeit specialists.
Here the typical colour change from green to blue is missing.
And also the band of light that moves up and down
when the banknote is tilted has not been imitated at all ...
This is how it should look.
The watermark should only be visible when held against the light.
This one has been printed on the note.
When examining the banknotes,
the Bundesbank's experts are able to assign the notes
to a specific counterfeiting workshop.
That way they can keep tabs on the counterfeiters
and prove the extent of their counterfeiting activity
before a court of law.
But there's no need to worry:
counterfeit money is extremely rare and is usually detected straightaway.
Statistically, you would have to live to the age of 1,000
to come into contact with a counterfeit just once.
Nevertheless, it's advisable to examine every banknote for authenticity
because counterfeit money is, of course, non-reimbursable.
Those banknotes which have been successfully checked by a processing machine
can be paid back out again.
Those that are destroyed are replaced with freshly printed banknotes.
And so the cash cycle begins all over again.
Nowadays, citizens can choose from a wide range of payment instruments.
It's their personal decision when and for what purpose they choose to use cash.
The Bundesbank will ensure that the public continues to have this option in future.
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