http://www.bankofcanada.ca/en/fellowship/highlights_res_06.htmlHighlights of Medium-term Policy Relevant Research: Update 2006
Theme 8: Currency—The Next Generation of Bank Notes
Policy issue:
Following the successful launch of the Canadian Journey series of bank notes, we are turning our attention to the next generation of bank notes. The threat of advances in technology to make high-quality counterfeits will continue to rise and the Bank will respond on an ongoing basis by anticipating such developments and by monitoring, evaluating or potentially developing new materials and security features. While research will continue on shorter-term questions such as the durability of notes in circulation and measuring the effectiveness of bank note communication, the primary focus will be on a multi-year research program leading to the timely introduction of a new generation of bank notes in order to maintain their security, so that Canadians can use them with confidence.
The research required for this undertaking is broad. First, further theoretical and empirical research are needed to understand who uses bank notes, how they are used, and what is the future of bank notes compared to other means of payment – how they can play the most productive role possible within Canadian society. Second, technical research and development will expand to provide ongoing assessment of existing and emerging technologies available to counterfeiters of bank notes. Scientific research and development will contribute to the selection of future bank note materials and security features. Finally, policy and strategic research is required to address a number of issues that will arise as planning for the development of the next generation of bank notes begins.
The Bank has a strong reputation for collaborative research. Research and development will continue to be done with others when this approach improves the potential for success. Entities in Canada and internationally will also be sought out and encouraged to engage in research and technical development that we believe will deal with existing and emerging threats we have identified.
Research questions:
Q1: How are Canadian bank notes used and what is the likely evolution of bank notes relative to other payment methods?
Q2: What security features, materials, and technologies should be adapted or developed for possible inclusion in the next generation of bank notes?
Q3: How can the Bank improve the management of bank notes in circulation, including measuring their durability and the effectiveness of communication to deter counterfeiting?
Canadian Paper Money
