Upgraded $10 bank note in 2005.

News: Welcome to the Canadian Paper Money Forum.

The Bank of Canada plans to upgrade the security features of the $10 bank note from the Canadian Journey series in the spring of 2005..

http://www.bankofcanada.ca/en/banknotes/general/character/

OK for a Upgraded $10 note in 2005  

but what about a Upgraded $5 note  

Highly unlikely the $5 notes will be released.  When I chatted with Deputy Governor Jenkins, he only had concerns about the $10 note.  He didn't express any concerns with the $5 note.

I understand, Michael.  The $5 note is the smallest denomination of Canadian banknotes currently available.  I kind of figured that there wouldn't be an upgraded fiver whatsoever - it would be the same kind of not-so urgency with the long-discontinued $1 and $2 bills.  Nobody would have ever been that stupid to counterfeit a $1 or $2 bill - they were so "petty" to copy.

Bye 4 now , Jonathan

These people fake $5's because they're the least likely bill to be scrutinized.

Now do you think this 2005 upgraded 10$ would still fall under the BC-63 category or would it be considered
BC-67? Do you think we'd see it as issue of 2005 instead of 2001???
Lets keep this in mind: In 1955 the 1954 series was redisigned to a modified queen's portrait but the series date stayed the same.
In 1979 we saw a slight modification to the multicoloured series notes for the 5$ and 20$ and the series date was changed to 1979 but was still considered a multicoloured note... I predict that we will see a change of issue ie 2005 and i also predict we will see this as catalogue BC-67 or BC-68 if the 5 is also changed

Interesting question!  

How much of an upgrade warrants a "new" note, and thus a new catalogue designation?

I think I am looking forward to the "new" 10 more than I am the Journey 20 and 50!

What a great time to be a collector!  

Probably the ''new'' 10$ bill will be printed with the mention ''Printed in 2005'' and will become BC-67 (or BC-68 if an upgraded 5$ will appear.)

However, remember these examples:

The 1937 1$ bill is known to have 2 varieties:

1- The ''Wide signature panel''
2- The ''Narrow signature panel''

The date on the bill (Jan.2 1937) was not changed
And they are both coded BC-21.

The 1954 issues are known under 2 varieties (Devil's face and Modified)

The date on the bill was not changed (1954) but Charlton give them 2 sets of numbers :

BC-29 to BC-36  Devils note
BC-37 to BC-44  Modified

For the multicoloured issue (69-75/79)

The 1972 5$ (BC-48 ) and the 1969 20$ (BC-50)
have received a modified design in 1979 and the new issues are known as :

BC-53 : 1979 5$
BC-54 : 1979 20$

The Bank of Canada plans to re-issue a $10 bill next year and is still studying whether it will put out a new $5 bill.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1097709198325_147/?hub=Canada

I'm looking forward to new $10 bills, It would be more interesting than other denominations, since we already have a less secure version, and when it comes out, we'll be able to compare the two ntoes for differences. It would be great if they made them like the new 20, 50, 100 bills. Also would love to see upgraded $5, really every country dosen't care what the face value is, security features are consistent, some countries issue hi-tech bills for notes worth less than $2 Canadian, yet include holograms and so forth. However, I watched a show on designing new US currency, and tests showed, holograms like the ones on our 100s and 20s, don't last if crumpled, the hologram's designs cannot be seen any more. Try seeing a crumpled Journey 100, you'll know what I'm talking about.

Also would love to see upgraded $5, really every country dosen't care what the face value is, security features are consistent, some countries issue hi-tech bills for notes worth less than $2 Canadian, yet include  

I agree. It seems kind of silly that the government and the Bank goes on and on about the "expensive new features" on the $20/$50/$100 notes, when they only cost nine cents each to make, regardless of denomination.

The only explanation I can think of is that the government doesn't want its seigniorage revenue to go down. But if new $5s with $20 security features were released, it wouldn't reduce the revenue by much, percentage-wise. The old Birds bills all cost six cents each.  Assuming that the current Journey $5 cost six cents to make as well (it probably costs more, though) the seigniorage revenue per note is $4.94. If a new $5 were made with the cool features, the revenue would be $4.85, which is only a 0.6% loss in seigniorage!

Personally, if I were a Bank, I'd make my notes as expensive to produce as possible, to reduce counterfeiting. (I'd also make them as durable as possible---if I have to keep on reissuing replacement notes, it would eat up my revenue entirely) Who would want to counterfeit a $20 bill that cost $19 to make?  

I agree with those who want to see the $5 retooled along with the $10.  Would it not make sense for us to apply our new anti-counterfeiting technology to ALL of our money?  20 fake $5s is a fake $100, after all.  Why leave anything to chance?

Jason


(PS: For those of you who consider this noteworthy, this is my 100th post.)

The only explanation I can think of is that the government doesn't want its seigniorage revenue to go down. But if new $5s with $20 security features were released, it wouldn't reduce the revenue by much, percentage-wise. The old Birds bills all cost six cents each.  Assuming that the current Journey $5 cost six cents to make as well (it probably costs more, though) the seigniorage revenue per note is $4.94. If a new $5 were made with the cool features, the revenue would be $4.85, which is only a 0.6% loss in seigniorage!

Seignorage comes from coins only, bank notes are considered to be a liability against the Bank of Canada. Thats why some countries like Switzerland, Sweden and lots of others demonetize their older notes after 25 or so years, to get rid of the liability.

K.

Seignorage comes from coins only, bank notes are considered to be a liability against the Bank of Canada. Thats why some countries like

I'm not sure about how it works in other countries, but in Canada, banknotes produce seigniorage as well. You are correct in that a banknote is a liability against the Bank of Canada, but the key is that it is an interest-free liability. Often, the Bank will inject money into the economy by buying government securities from non-governmental entities with newly-"printed" money. In essence, they are trading an interest-free liability (banknotes) for an interest-paying liability (government bonds). The interest paid on the securities, minus the production cost of the bills used to purchase them, is the seigniorage (which is spread out over a number of years).

However, you would be quite correct in criticizing me for the (incorrect) way I calculated seigniorage. The method I used does only work for coins. The seigniorage on a $20 bill is actually about $2.88 over its lifetime (96 cents per year for a 3-year lifetime). For details, please see: http://www.bankofcanada.ca/en/backgrounders/bg-m3.htm