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The banknote security frontier has just gone deeperIntroducing Guardian®’s ‘Innovating for 25 Years’ Concept Note
25 years of relentless innovation forges a new paradigm in banknote security that goes well below the surface:
HORIZON®, LATITUDE®, ECLIPSE® and D-CODE™.
To understand how these leading edge security features use the full depth of the world’s most sophisticated
banknote substrate, secure your ‘Innovating for 25 Years’ Concept Note sample from the Guardian® booth at
2013 Currency Conference or contact: [email protected]
G U A R D I A N ® ECLIPSE
A diffractive optical element, viewed with the aid of a point light source, whose effects extend for the first time to animated images.
G U A R D I A N ® LATITUDE
A technology that delivers strong holographic foil effects with the added dimensions of offering total design freedom and extremely high durability.
G U A R D I A N ® HORIZON
A lens-based technology that uses the full 75µ depth of the transparent Guardian® substrate to maximise bold switching effects.
G U A R D I A N ® D-C O D E
A unique code in the substrate that authenticates a genuine Guardian® note and confirms its denomination using a state-of-the-art high speed detector.
SPECIMEN: ISSUE 2
1
Contents
16Industry Interview
KBA-NotaSys
Industry Insights with Johannes Schaede, Technical Director, KBA-NotaSys.
18Research and Development
Journey to the Centre of a Note
R&D efforts have driven DOE technology to new heights as the Mexican public are introduced to ECLIPSE® on the new 50 Peso note. R&D Scientist Michael Hardwick explains.
7New Products
Rollout of Verus® Devices Begins
The world’s first device to authenticate a genuine Guardian® banknote based on the structural and optical characteristics of the base film, Clarity®C, is now available.
8Specimen Exclusive An interview with Alejandro Alegre
Alejandro Alegre, General Director of Emission at Banco de México, reflects on the launch of the new 50 Peso banknote and his Bank’s response to a professional counterfeiting threat.
14Economic Impact
The Guatemalan Experience
Erick Prado, Director of Currency Emission at Banco de Guatemala, tells us about the reasons behind the introduction of Guardian® to the Guatemalan currency system.
3Insight
Keeping You Notified
Insight and analysis from organisations and individuals experienced in working with Guardian®.
4Banknote Design
Planning The Journey Makes Designing The Dream Possible
Lachlan McDonald, Head of PolyTeQ® Print Services, and Amanda Jones, banknote designer, discuss some of the challenges and opportunities facing designers working with a polymer substrate.
Stunning foil effects. Amazing durability. Total design freedom.
Secure your LATITUDE® sample from the Guardian® booth at 2013 Currency Conference or contact [email protected]
SPECIMEN: ISSUE 2 SPECIMEN: ISSUE 2
2 3
Keeping You Notified
New SICPA Varnish Enhances
Resistance To Ink Wear
While always depending on Central Bank operations to withdraw notes once
they have reached the end of their useful life, it remains an ongoing focus to enhance the durability of Guardian® polymer substrate. One of the life-limiting factors on polymer notes is the wearing of prints, and to address this issue the Print services division of PolyTeQ has worked closely with SICPA to support the development of a new varnish system.
The new system SICPAPROTECT® has been the subject of numerous technical forums and extensive testing. PolyTeQ, KBA-NotaSys and SICPA used the new varnish on the Jules Verne Guardian® Note production run in 2012, plus further testing was also run with the recently-accredited printer Polish Security Print Works (PWPW) as part of their accreditation process, in a 40-ream or 20,000 sheets print trial. Regarding the trial printing, Tomasz Szymankiewicz from PWPW said “all up, a total of 7,750 sheets or 310,000 notes underwent varnishing with perfect results.”
PolyTeQ’s in-house testing used the A$5 note
and a polymer 20 Dirhams test note as a
control. Both are two-sided colour intaglio notes
with similar print specifications to the Jules
Verne and PWPW notes. The A$5 was however
over coated with the SICPA’s legacy OC5 and
OC6 offset overcoat and the 20 Dirhams with
SICPAPROTECT® 889354 flexo-overcoat.
The results were consistent with both test notes
showing improved print resistance based on the
Taber abrasion test. This test is a good indication
of improved wear resistance of coloured Intaglio
prints and offset prints during circulation. There
was also an improvement in controlling the
flexographic gloss readings, which not only
assists in the slip and aesthetics of the note but
also in note processing and high-speed detector
authentication.
For more information on SICPAPROTECT®,
contact the Head of PolyTeQ Print Services
Lachlan McDonald at
Nanotechnology Makes Electronic Security Features Possible
Innovia Security’s R&D division has been
working in the micro and nano-space for many
years, but recent advances in the field has meant
that the three-dimensional space that Guardian®
substrate provides has now grown significantly
larger as a medium with which to host features
designed using nanotechnology.
“Our work in this field is looking at how we
apply either nano-particles or nano-structures
to polymer substrate, and we’ve always been
fascinated with the interference between light
and these bodies and the effect they present to
the user,” says Odi Batistatos, R&D Technical
Manager at Innovia Security.
In working with nano-particles, research work
has pursued the path of optical effects produced
via printing. The use of nano-particles in ink
has enabled the printing of specialised effects
which is very much an exploration based on the
random distribution of these particles through
a liquid medium. Control of nano-structures,
however, enables the management of specific
relief structures that create predetermined and
reliable optical effects.
“In the past, security features were limited by
materials and their properties. These days nano
technology removes barriers, creating unlimited
technology options” says Mr. Batistatos. “We’re
now working from 10 microns down to the
nanometer range which has enabled a platform
for thin film technology and therefore ideal for
banknotes.”
In this relatively new field, other R&D teams
are creating insights into many other areas of
nanotechnology application, some of which
represent exciting potential applications to
banknotes. Mr. Batistatos says this cross-
fertilisation of ideas and findings means the
future capability of banknotes is wide open.
“For example, nano-electronic technology is a
rapidly developing field, and there is no doubt
that electronic security features on banknotes
will become possible. Ensuring nano-electronics
are flexible and durable will be the key to its
successful application to banknotes.”
INSIGHT
Innovation Seeds Transformation
In recently reading The Innovator’s Dilemma by Clay Christensen (Harvard Business School Press, 1997), I was struck by the clarity with which the author described the impact of disruptive technology on any given market. In this book, Mr. Christensen focused largely on the impact of innovation within the computer disk drive industry due to the large amount of data available on the hundreds of product launches that occurred in the industry across a 15 year period and the nature of how established companies did or did not adopt these technologies.
Without going into too greater detail in this column, what he demonstrated through his insightful analysis was that even the largest and most successful companies that dominated the computer market for a relatively short period of time found it impossible to adopt new technologies based on certain immutable forces that surrounded the success of their existing business. Incredibly, those organisations that listened carefully to customers, closely tracked competitor actions, and invested the necessary resources to design and build higher-performance higher-quality products that yielded great profit, ultimately stumbled or failed when confronted with disruptive technological change for these very reasons that made them successful.
As counterintuitive as this finding seems, it is a very real force at work in the banknote industry. In celebrating ’25 Years of Innovation’ – a relatively short period of time considering the 300 year history of the banknote industry – the introduction of Guardian® banknote substrate is a disruptive technology that is progressively solving more and more banknote management issues that Central Banks are grappling with.
Supported by a regular flow of technical improvements in security features, printing processes, and design knowledge across a quarter of a century, Guardian® is increasingly moving toward a mainstream understanding by Central Banks of the numerous benefits it offers and the transformative role it plays in the long term banknote management strategy of a nation’s currency supply.
I hope you enjoy reading this issue of SPECIMEN which is itself borne from a commitment to documenting the innovations and innovators that recognise, support and/or work with Guardian® polymer substrate.
Steve Casey Editor
From the Editor’s Desk
Editorial
Editor Steve Casey
Deputy Editor Carlos Fernandez
Contributors Odi Batistatos Michael Blesovsky Michael Hardwick Amanda Jones Lachlan McDonald
Design Next Brand Strategy & Design
Image courtesy of SICPA
4 5
For anyone with a love of travel, the sense of adventure begins when they have
the travel guide in their hands and they begin to browse through the ‘what ifs’
of different destinations and experiences that could form part of their next trip.
It’s exciting to think about and plan for and brings forth a whole range of ideas
and choices based on interests, time and available budget.
It is in fact this very analogy that Head of PolyTeQ Print Services Lachlan McDonald uses when he introduces the Guardian® Design Book and the value that it offers to banknote designers, some who are just starting a career in the field and many others who are highly experienced in banknote design for cotton-paper substrate.
“Banknote design is a journey, but designing for polymer substrate takes designers to lands they’ve never imagined before,” says Mr. McDonald. “What we have tried to combine into the first edition of the Guardian® Design Book is our collective knowledge gained over 24 years of designing, printing and issuing polymer banknotes.”
The primary objective of the Guide is to assist the banknote designer in creating designs that maximise the benefits of the technology. The recommendations and ideas are based
on research into all those areas where design has an important role to play; durability; cash processing; banknote production; counterfeit threats; cash handling and usage.
“For designers, we cannot emphasise enough how important it is to fully experience and therefore understanding the design rules for working with Guardian® and its various security features. Just as intaglio design is a specialist skill, so also is the integration of design work to polymer substrate and banknote print layers,” says Mr. McDonald.
“Ultimately, we want to support banknote designers to achieve beautifully designed but functional polymer substrate banknotes that earn the public’s confidence. We believe in modernising the industry using the latest technology to keep cash popular, and we think design has a huge role to play. Design is fundamental to any banknote’s success and
with the changing market and more designs
going out to tender, we see it as vital to lift the
general levels of knowledge and expertise about
designing for polymer.”
The art of balancing a range of visual elements to
create a banknote design of apparent simplicity
that enables public recognition is hard enough
when designing for paper, but can be quite
bewildering when contemplating Guardian®
substrate. In total, Guardian® substrate has 13
different layers of design requiring the provision
of seven plates for the print work – front and
back – which means a total of 27 plates to be
designed all of which must be fully integrated.
Banknote designer Amanda Jones has been
noted for her outstanding design work on
Guardian® substrate banknotes which includes
the Canadian banknote series and the recently
lauded Charles Darwin Guardian® Note.
“The available scope for design in polymer
substrate is a lot wider, and that makes it
difficult sometimes for designers because it’s
a large space to work in and you have to build
up to polymer banknote designing. I always
recommend designers start at the lower level
of polymer design and the progress to become
more and more advanced,” she says.
BANKNOTE DESIGN
Designing The Dream
Planning The Journey Makes Designing The Dream Possible: To coincide with the launch of the
Guardian® Design Guide, Lachlan McDonald, Head of PolyTeQ Print Services, and Amanda Jones, banknote
designer, discuss some of the challenges and opportunities facing designers working with polymer substrates.
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“Banknote design is a journey, but designing for
polymer substrate takes designers to lands they’ve
never imagined before.”
SPECIMEN: ISSUE 2 SPECIMEN: ISSUE 2
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From a Central Bank perspective, Ms. Jones
makes the point that ease of use for specific
features is an important design consideration.
Enabling the public to verify a banknote without
really knowing it is a significant challenge but if
achieved allows the Bank to be 50% ahead of the
counterfeiting game.
“For instance,” says Ms. Jones, “a shadow image
may have a printed see-through feature next
to it, so when a person on the street verifies
with the shadow image and they view the see
through feature at the same time, they’ve
automatically looked at two security features.
That sort of understanding of feature use assists
with the integration of security features and also
emphasises the fact that design in some ways
needs to be very simple. If a person rings up a
Central Bank to report a counterfeit, the Bank
needs to be able to ask simple questions to help
verify the note. ‘Does the number 50 flip from
a 50 to a tree? Yes it does? Okay, let’s look at
another feature’… and so on.”
The best way to obtain this understanding is for
designers to attend IBDA OutReach seminars
and conferences, and collaborate directly with
experienced suppliers of Guardian® polymer
substrate and third party features. The Design
Guide along with one-on-one training workshops
is intended to provide banknote designers with
the most comprehensive insight into designing
for the three dimensional nature of polymer
banknote substrate. Since the launch of the Guide in September 2012, there has been strong interest from the design community with a number of workshops already completed.
PolyTeQ Services’ Mr. McDonald also notes the time invested in attending these seminars is about commercial interest as much as it is about learning to manage the expanding design horizons offered by polymer substrate.
“Whenever there is more complexity, there is the possibility of extra time being required to obtain the best possible outcome, and time therefore needs to used as efficiently as possible. For that reason it is advisable to engage with suppliers and other relevant resources at the earliest possible stage,” he says.
This level of engagement at the concept design stage results in higher quality design outcomes within shorter timeframes.
Mr. McDonald explains: “Once a designer understands the design and project objectives, PolyTeQ® Services will collaborate with the designer using the Guardian® Design Guide, training workshops, and security feature specification sessions. From this, the designer can build a concept design in discussion with their customer.”
From a leading designer’s perspective, negotiating this initial concept design stage is the key to success.
“That is the art in my profession, and it’s quite
a hard thing to do…something very simplistic,
but at the same time creating something really
intricate. That’s when your head splits in two and
you go from simply designing into the process
becoming a science,” says Ms. Jones.
“In regards to what ignites this process, it varies
for every designer, as people tend to click with
different icons or values that they like within
a design. For myself, I tend to like colour and
pattern work so if I’m designing for a particular
country, and there may be a specific pattern work
of that country, then I start to prepare a rough
design with those elements in mind. A lot of
times it can also be flowers; every country tends
to have a national emblem, a national flower
and their flag. For instance, if you start with the
flower, then you can evolve quite quickly as this
is an element that most Central Banks will look
at to begin with.”
Should Guardian® be selected as the substrate
of choice, PolyTeQ® Services continue to
collaborate further with the designer which
includes a design review service, all of which
dramatically increases the chances of success
in delivering a project that meets the Central
Bank’s critieria for acceptance of a banknote that
ultimately serves to inspire a nation.
Verus® handheld and desktop devices will be launched this month at the 2013
Currency Conference. Verus®, the world’s first device to authenticate a genuine
Guardian® banknote based on the structural and optical characteristics of the
base film used to create the substrate, will enter the market after an intense
period of development.
Verus® has been developed by Innovia Films to verify that Clarity®C film, the core ingredient of Guardian® banknote substrate, is present in the note being tested.
Clarity®C has unique characteristics inherent
to the film that derive directly from the unique
bubble process by which the film is made.
Clarity®C is manufactured by Innovia Films in
several locations worldwide and operates on
equipment developed and built in-house at its
headquarters in Wigton, England. This is a film
that has proved itself to be not only functionally
ideal for banknotes but is also inherently secure.
“We are aiming to have both the hand-held and
desktop devices ready for Currency Conference,
and expect that in the very near future we will
have a working version of our laboratory device, VerusLAB II,” says Michael Blesovsky, Managing Director at Innovia Films Sàrl, the organisation that has invented and developed the technology.
There are numerous benefits provided by Verus® security. Given the technology works using analysis of specific structural and optical characteristics of the film which are controlled during the production process, the substrate does not require additives such as taggants or other active pigments.
In addition, the analysis is performed using the window areas of Guardian® substrate banknotes. Since the security characteristics are passive, Verus® does not interfere or interact with other machine detectable features that the banknote issuer might wish to use.
The elegance of creating a security element
that is inherent to the substrate is underscored
by the fact that Verus® can be used not only
for newly issued banknotes but also for those
already in circulation. Further, the use of Verus®
does not come at an additional cost to the
substrate or the banknote itself.
Totally unique in the field of banknote security,
the Verus® devices will be launched across 2013-
14. The devices will cover a range of applications,
from laboratory analysis tools to hand-held
and desktop devices – that process single and
small batches of notes – through to modules
for integration to existing banknote handling
equipment including high-speed note sorting
devices.
The elegance of creating
a security element that is
inherent to the substrate
is underscored by the
fact that Verus® can be
used not only for newly
issued banknotes but
also for those already in
circulation.
NEW PRODUCTS
“Once a designer understands the design and project
objectives, PolyTeQ® Services will collaborate with
the designer using the Guardian® Design Guide,
training workshops, and security feature specification
sessions. From this, the designer can build a concept
design in discussion with their customer.”
Amanda Jones (left) and
Lachlan McDonald
Clarity®C film, Guardian® substrate and Verus® authentication – Clearly Secure
7
Rollout of Verus® Devices Begins
8
SPECIMEN EXCLUSIVE
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SPECIMEN: ISSUE 2
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How do rates of counterfeit attack on paper notes vs Guardian® notes compare?
In the last 15 years, only two major highly professional counterfeit attacks were registered: one in the late 90’s against one of our denominations when only paper notes were in circulation, and the other one, two years ago, against the 50 Peso.
In Mexico we have currently six denominations in circulation, from at least two different series each. As mentioned before, the 50 and 20 Peso notes are the most recent notes to be printed on Guardian®. Regarding the counterfeit pieces against the authentic banknotes (parts per million (PPM) by denomination), in 2010 the higher rate registered was for the 1000 Peso, our highest denomination, with a value of 229.69 PPM; and the lowest rate for the 20 Peso, the lowest denomination, with 0.05 PPM.
In 2011 and 2012 however, the situation changed with the appearance of the professional counterfeit of the 50 Peso, making this denomination the one with the highest rates for each year: 221.34 PPM for 2011 and 288.31 PPM for 2012. However, bearing in mind that this was a result of a single counterfeit attack, if the
contribution of this professional counterfeit is
not considered, the behaviour of the rate would
be similar to 2010.
In conclusion, regarding the comparison
between polymer and paper, it is difficult
to determine if it is the substrate or the
denomination that exerts greater influence on
the counterfeit levels in México.
What in your opinion were the key elements that enabled BdM to respond successfully to this threat?
There are many factors that require a holistic
approach to a successful response. These
include:
• the fast detection of the counterfeits; working
closely with the police and law enforcement
authorities as well as other stakeholders
(CITs, financial institutions etc);
• an effective scheme to assure a timely flow of
information, reporting and intelligence
• production is critical;
• previous essays on the design of the 50
Peso note helped to have a proposal for the
upgrade in a short time;
• the suppliers’ support and guidance, and;
• the commitment and correct administration
of all the involved areas, including the
Governor and Board of Governors.
Can you take us through the process BdM used to identify the right security features in the new 50 Peso note, and in what timeframe was this achieved?
It was decided to preserve the general design
structure, in order to keep a certain similarity
with the other notes of the present family, to
avoid the confusion of the general public and
because the impracticality of changing the
design given the time constraints.
Because of the urgency of having a proposal,
only a few new features were evaluated for
inclusion in the 50 Peso. The security features
evaluated were: AURORA® (colour-shifting
ink); ECLIPSE® (an optically-diffractive image);
HORIZON® (a dynamic image using lenticular
technology); LATITUDE® (an embossed
holographic feature); a high definition
holographic feature on foil; NOTA MARK® (laser
numbering); TWIN PERF® (micro perforation);
and SPARK® (an optically-variable magnetic ink).
Can you take us through a brief history of the 50 Peso and why Banco de México (BdM) chose to use Guardian® for this note?
In 2001, Banco de México decided to print the lowest denomination note (20 Peso note) on polymer substrate mainly because of its increased durability, given the production capacity of the printing works. Due to the same reason, in 2004 it was decided for the new series to maintain the 20 Peso on polymer and to migrate the 50 Peso also on polymer.
Why did BdM embark on a new 50 Peso note?
The security features in our lower denomination notes (20 and 50 Peso) are relatively old. The Bank rested on the fact that polymer notes were not being massively counterfeited and also on the idea that low denominations do not require as much protection since they are less attractive to counterfeiters.
In June 2010, Banco de México detected the first professional counterfeit pieces of the polymer 50 Peso note. These first imitations had considerable shortcomings in terms of quality but since then, the counterfeiters improved
their reproduction methods. The latest version
(appeared in August 2011) had achieved an
excellent imitation of the genuine banknote.
As mentioned previously, this is the first
professional counterfeiting attack in Mexico
affecting polymer notes and forced the Banco de
México to work on a new 50 Peso note for the
following reasons:
• The quality of these counterfeit notes
(the latest version) made them virtually
indistinguishable from the authentic notes
for the general public.
• The Central Bank was unable to offer the
general public any helpful information to
detect the forgery, because of the precise
imitation of the note’s security features.
• Even commercial banks, retailers and other
large users of cash using specific equipment,
had difficulty identifying the counterfeit notes.
In January 2012 the Board of Governors
approved to upgrade the 50 Peso note as soon
as possible.
How would you describe the counterfeit
environment in Mexico when comparing
casual attempts at counterfeiting to
professional attacks?
In Mexico, casual counterfeits represent
approximately 95% of all the detected fake notes,
which means that it would be easy to some
extent to differentiate between a genuine note
and a counterfeit, provided that people take their
time to check for authenticity.
The fact that casual counterfeiting is the most
common is somehow reassuring, as our
notes are not the target of organised crime.
Nevertheless, this situation is nurtured by a
widespread feeling of impunity amongst a
certain sector of Mexican society, that they can
commit crimes and expect to get away with it,
and secondly due to a poor culture of checking
the notes for authenticity.
We as a Central Bank are working in two ways:
with the authorities to pursue the counterfeiters
and in publicity campaigns to educate people to
check the notes they received.
SPECIMEN EXCLUSIVE
The new Mexican 50 Peso note, launched on 6 May 2013
12
The criteria used for the evaluation were: adversarial analysis, performance against counterfeits in other countries, durability, incorporation into the printing process and the ease with which a feature can be identified and communicated.
What are the major security features on the 50 Peso and why did you choose these technologies?
The main security features chosen were:
• Optically variable magnetic ink Spark® because:
» Bright and colourful, easy to identify and communicate.
» Harder to imitate than the first generation OVI (currently on our paper notes, which have not been professionally counterfeited).
» Easy to incorporate in the design, with the option to put in a window and see the colour effect for both sides of the note.
» Although this second generation of OVI has never been used on polymer banknotes (no information on durability and effectiveness over time), laboratory testing concludes it will last the same or more than the Intaglio printing.
» The feature can be integrated in-house, instead of using a third party. This required the acquisition of silkscreen equipment that could be used for other security features in future banknote series.
• Diffractive image Eclipse® because:
» Bright, striking, easy to communicate and
identify (although it requires a single-
point light source such as a household
incandescent light bulb).
» This is the latest generation of the feature,
which has not been used in any banknote
yet.
» Directly applied into the substrate by
the supplier as part of its fabrication
process. No need to purchase additional
equipment.
» Laboratory tests show a good resistance
in circulation.
» In an early adversarial analysis, a
convincing imitation could not be
achieved.
How would you describe the level of collaboration and partnership BdM experienced in delivering a security solution for the 50 Peso?
We had very strong collaboration, support and
commitment from the suppliers (substrate, inks
and silkscreen machine).
Additionally, Central Banks with close working
relations to our own offered their assistance
in the process. No formal collaboration
agreements were signed.
What did BdM learn from this experience in regard to successfully dealing with professional counterfeit attacks?
i. The importance of working closely with the
police and law enforcement authorities as
well as other stakeholders (CIT companies, Financial Institutions) and providers
ii. To have in place an effective scheme to assure a timely flow of information, reporting and intelligence production
iii. To have prepared an alternative design for each denomination, in case an upgrade is needed
iv. The full commitment of all the staff in the printing works, issuance division, communication and purchasing areas in the Central Bank.
What advice would you offer other Central Banks who might be struggling with professional counterfeit attacks within their borders?
There are a number of key areas which include: a close assessment of counterfeits to detect any possible threats as soon as possible; a close relationship and support with law enforcement agencies in order to work together and share useful information; contingency banknote designs ready to be produced in case a quick update is needed; a permanent effort to promote the main security features of the banknotes on TV, radio and media ads, with specific ads describing that counterfeiting is a serious federal offence punishable with prison, and asking the general public to report and share with the police any valuable information; and the importance of sharing information between Central Banks, suppliers, CIT’s, and commercial banks as it is fundamental to exchange points of view and process information for effective decision making.
Activity timeline showing the development process of the 50 Peso note2012 2013
1Q 2Q 3Q 4Q 1Q 2Q
Board of Governors authorisation (security features, design and silk screen equipment purchase)
Substrate design & purchase, ink formulation, origination, & plate manufacturing
Silk screen equipment purchase and installation,
ATM test conduction
Offset, silk screen and intaglio printing, numbering, flexography (overcoat)
Issuing
SPECIMEN EXCLUSIVE
13
The new Mexican 50 Peso note, launched on 6 May 2013
14
When did Guatemala first adopt Guardian®?
Guatemala first started using Guardian®
polymer substrate in August 2007 with the
release of the 1 Quetzal banknote, and then
expanded its use to the 5 Quetzales banknote,
which has been in circulation since November
2011. To date, we have collected circulation
sampling test results of the 1 Quetzal banknote
only, as the 5 Quetzales note has only been in
circulation for a relatively short time.
The 1 Quetzal banknote is the legal tender with
the lowest value in the Guatemalan currency
system. With its introduction, we designed
and launched a nationwide informational and
educational program aimed at all layers of
society.
There has not been counterfeiting in this
denomination to date, which we associate to its
low value. Indeed, we estimate that there is no
economic benefit for counterfeiters nor have we
any knowledge of that banknote being used as a
base to counterfeit any other banknote of higher
denomination.
Why did Banco de Guatemala first consider moving from paper to Guardian®?
The short term durability of the 1 Quetzal
cotton substrate banknote was starting to effect
currency management costs, especially when
taking into consideration the weather conditions
in Guatemala, the population’s banknote usage
habits, and the banknote’s high rotation index.
Indeed, by building the banknote with the lowest
denomination in cotton substrate, its durability
was approximately 1 year.
Since the 1 Quetzal banknote in Guardian®
polymer substrate entered circulation in August
2007, we have applied 14 sampling tests which
helped determine that its lifespan has increased
to 3.6 years.
Have there been any benefits for the economy after moving to Guardian® banknotes?
Banco de Guatemala performed a cost-benefit
analysis following the introduction of Guardian®,
which revealed that its breakeven point in terms
of durability is approximately 3 years. According
to our sampling tests results, the Guardian®
polymer substrate banknote exceeds this
point - 3.6 years using an Exponential Decline
methodology. That is to say there is a benefit to
the country in reducing our investment in buying
other types of banknotes.
Were there any changes in the Bank’s operations due to the introduction of Guardian®?
The costs associated with implementing polymer
substrate banknotes are naturally higher than
using cotton substrate banknotes, therefore,
for a Central Bank to decide to print some or
all their denominations at a higher cost, they
must consider the marginal benefits of such a
decision.
In the case of Guatemala, since we did not
have the threat of counterfeiting, we had to
demonstrate that the increased banknote
lifespan justified the investment in polymer
substrate. Based in our sampling test results,
we determined that the average lifespan of the
1 Quetzal banknote increased, on average, 3.6
times. This finding had a direct implication in
our decision process, as it extended the time
between upcoming banknote buying processes.
In an exclusive interview with SPECIMEN, Erick Prado, Director of Currency Emission at
Banco de Guatemala, tells us about the reasons behind the introduction of Guardian®
to the Guatemalan currency system.
ECONOMIC IMPACT
The Guatemalan Experience
15
Advice based on the
use of Guardian® in
Guatemala
After using Guardian® substrate for more than five years, Director of Currency Emission at Banco de Guatemala, Erick Prado offers the following advice for other Central Banks:
Public education is vital. The public needs to be well-informed in order to create an appropriate level of understanding and expectation of polymer notes.
The key message is that polymer substrate is a different material and therefore has different characteristics from cotton-paper notes. Erick makes the point that polymer banknotes do not take folds, as paper notes do, but tend to push back open to their original shape.
Due to polymer substrate’s flat surface, Erick remarks that new notes can sometimes stick together. For notes that appear new, the public should flick or rub the edge of the note to ensure they are passing a single note.
While it is harder to initiate a tear in Guardian® substrate compared to paper, once cut polymer notes can tear quickly. In cases where tears
have been initiated, it is recommended that a
small section of clear tape be used to prevent
further tearing and the note exchanged at any
commercial bank.
Managing ink wear. Don’t forget that polymer
is extremely durable, so managing ink wear is a
critical issue as the circulating notes approach
the end of their useable life. There are two key
activities in relation to this issue:
1. Ensure that the printing process includes
the proper application of varnish once the
offset print layer is completed. This important
print layer helps extend the life of the ink and
therefore the note.
2. True for both polymer and paper, it is
important to have the processes in place to
remove old notes in circulation as efficiently
as possible. If unchecked, notes that should
be withdrawn but are allowed to remain
in circulation begin to look degraded in
appearance and this can impact the public’s
impression of note quality.
STRAIGHT TALK
GUARDIAN ® ACCREDITED PRINTERS
There are currently 16 print works worldwide accredited to print on Guardian®
Bureau of Engraving and Printing (BEP)
Fort Worth, USA
Accredited April 2010
Canadian Banknote Company
Ottawa, Canada
Accredited January 2005
Oberthur Fiduciaire
Paris, France
Accredited December 2008
Orell Füssli
Zurich, Switzerland
Accredited March 2009
Joh. Eschede Security Print
Haarlem, The Netherlands
Accredited November 2012
Giesecke & Devrient
Munich, Germany
Leipzig, Germany
Selangor, Malaysia
Accredited April 2009
Polish Security Printing Works (PWPW)
Warsaw, Poland
Accredited January 2013
Hong Kong Note Printing Limited
New Territories, Hong Kong
Accredited December 2008
Banco de Mexico Printing Works
Mexico City, Mexico
Accredited 2002
Banco de la Republica
Bogota, Colombia
Accredited January 2011
Casa de Moneda de Chile
Santiago, Chile
Accredited May 2009
Casa da Moeda do Brasil
Rio de Janeiro, Brasil
Accredited October 2010
South African Banknote Company
Pretoria, South Africa Accredited April 2009
Nigerian Security Printing and Minting PLC
Abuja, Nigeria
Accredited September 2007
State Print Works of Vietnam
Hanoi, Socialist Republic of Vietnam
Accredited June 2007
Note Printing Australia
Melbourne, Australia
Founding Printer
SPECIMEN: ISSUE 2
16 17
KBA-NotaSys: Technology and Services as an Art
KBA-NotaSys has recently released the Simultan IV, a ten unit six by four press with two dedicated UV-curing units. What are the key features of the Simultan IV and what benefits will it offer print works?
The SUSI IV is the next evolutionary step for
Simultan printing, based on the platform that
KBA-NotaSys introduced in 2004. The 4 over
4 SIMULTAN is the foundation on which the
modular extendable concept is built. It has the
ability to carry a two colour inprinter either with
a classic SIMULTAN or Orlof configuration.
The intermediate dryer allows superposition of
inks in high density elements. The latest high
precision SUSI suite comprises design, plate
making, make ready and semi-automatic plate
clamping, which we believe leads to unmatched
precision in the creation of highly secure
interference, lens and UV features.
In KBA-NotaSys’s experience, how would you rate the material performance and print performance of polymer versus traditional paper substrate?
All substrate has its own individual offerings,
advantages and challenges. The experience with
the polymer substrate has contributed to our
understanding of the limits of all our processes
and the new possibilities that it can offer. The
clarity of fine line printing, special effect inks
such as SPARK® amongst others allow for
excellent results in the use of these processes.
We believe it is critical that during the design
stage the options of added security features and
the value of integrated design are fully taken
advantage of and implemented correctly. It is in
that precise implementation that KBA-NotaSys
adds tremendous value.
Industry Insights with Johannes Schaede, Technical Director, KBA-NotaSys.
INDUSTRY INTERVIEW
KBA-NotaSys has a reputation for producing leading edge printing equipment. What core competencies has the company developed to
achieve that reputation?
The core competencies of KBA-NotaSys are the mastering of all processes needed to produce a state-of-the-art banknote. Today this is not just a question of placing the printing machines on centre stage, but rather the ability to understand and master all elements of design, origination, plate making, press make ready and printing. This insight, this core competency if you like, enables KBA-NotaSys to offer our customers a complete solution to efficiently producing secure and aesthetically pleasing banknotes.
How has KBA-NotaSys had to adjust its technical offering with polymer substrate being more widely used at banknote print works?
The range of substrates used for banknotes today offer a host of new opportunities and
challenges in equal measure. We had to learn how to cope with the specific physical characteristics of the material mostly from the set-up of the machines. This also extended to learning how to work with polymer at the periphery of our machines in order to optimise the logistic modules. In areas where thermic processes such as dryers and heat transfer are involved, understanding how to work with the specification of a given material involves working closely with the substrate manufacturer in order to deliver the optimal result.
After an intense period of technical challenge, the OptiNota H has proved highly successful in applying foil to Guardian® polymer substrate for the Canadian banknote series. What in your opinion is the key to this success?
The success of the OptiNota H lies mainly in its concept of being a sheet fed machine. Thanks to the valuable support of KURZ, we were able to adapt the well-known MHS roll-to-roll process for the OptiNota H. The foil needs to be precisely positioned so that it registers perfectly with the substrate elements, and the sheet process allows the foil to register on each individual sheet independently. Another
advantage is the flexibility to use this application wherever it is required in the process. Most often, as in the Canadian note series, this process will occur in the print works between SIMULTAN and Intaglio.
KBA-NotaSys were a key partner in the printing of the recent Charles Darwin Guardian® Note – a note that demonstrated complex design integration. What challenges does increasing design complexity demand of printing equipment?
The complexity of design integration is a challenge for the printing equipment but also, and perhaps more importantly, it provides the opportunity to demonstrate the up-to-date production processes that KBA-NotaSys machines are capable of delivering. The distinction between high-end security design and commercial imitations is due mainly to the creation of sophisticated design elements that seamlessly integrate a number of security features. This is valuable IP that comes today at no incremental cost. As design becomes more sophisticated, so must our processes in order to keep ahead of commercially available counterfeit technologies across the foreseeable future, which we regard as the next 10 to 15 years.
“As design becomes more sophisticated, so must our processes in order to keep ahead of
commercially available counterfeit technologies across the foreseeable future, which we regard as
the next 10 to 15 years.”
Recent examples of fine detail print work from KBA-
NotaSys machines as applied to the Charles Darwin
Guardian® Note, and the Canadian and Romanian
note series
Image courtesy of SICPA
Image courtesy of SICPA
18
Journey To The Centre Of A Note
After the first WinDOE® was used in a Romanian
2000 Lei Commemorative Note in 1999, the
Diffractive Optical Element has remained at the
forefront of anti-counterfeit technology. Michael
Hardwick, an R&D Scientist with Innovia
Security, is the company’s lead researcher in
DOE technology and highlights key changes in
the technology over the last 15 years.
The Diffractive Optical Element (DOE) is a
key technology in providing public confidence
in note authenticity. DOEs were first seen in
the market in 1999 and then used on the first
mainstream denomination in 2001 (Vietnamese
500,000 Dong) as the WinDOE® security
feature. In 2013, the latest DOE appears on the
new Mexican 50 Peso as ECLIPSE®, and shows
how DOE technology has developed in new and
exciting ways.
On initial inspection, the WinDOE® and
ECLIPSE® features carry very similar effects. Both
structures produce a projected image when
viewed with a point light source which appears
as a transparent/translucent projected image
that appears from the very core of the banknote.
However, this is where the similarities end.
While being effective as an anti-counterfeit
device used in various currencies, R&D
researchers in the early days of DOE technology
were coming up against limitations that needed
to be overcome in order to take the DOE feature
to the next level. This included:
• Developing improved projected images from
the simple centro-symmetrical images that
were only possible at the time.
• Expanding on the limited number of devices/
versions of DOEs which could be produced by
the manufacturing method available.
• Maximising the ease of inspection for the
public.
As we started to produce large quantities
of WinDOE®, our processes became highly
controlled in creating the feature - the natural
outcome was a quality effect produced at high
speeds and low spoilage. Despite this success,
we believed as an organisation that it was
important to push this technology to the next
level to solve the challenges mentioned above.
After years of working with new technology
options, ECLIPSE® was developed and uses a
different technology platform altogether. This
new technology has enabled the production
of DOEs to a higher standard of image and
reproducibility than could ever be achieved
previously.
The new method of manufacture to produce
ECLIPSE® has many advantages, which include:
• Increased brightness.
• Increased size, therefore ease of use, which is
a huge advantage as the note does not have
to be held as close to the eye.
• Greater variations of DOE images that are
far more design friendly, for example, non-
symmetrical images such as ‘$50’ or ‘$100’
that reflect the note’s denomination.
• The possibility of true design integration
that can now be seen in the ‘Innovating for
25 Years’ Concept Note where an animated
image – the gecko – is ‘walking’ up the tree
design on the substrate layer.
• Consistently higher rates of reproducibility.
As a further enhancement to this feature, the
ECLIPSE® device utilises a protective overcoat.
This coating has two purposes. The first is the
protection of the DOE’s structure from natural
oils due to handling, which previously held the
possibility of reducing the effectiveness of the
device. The second is the added security to the
device, as the coating reduces the possibility for
the structure in its current form to be replicated
by mechanical means.
RESEARCH & DEVELOPMENT
R&D efforts have driven DOE technology to new heights as the Mexican public are introduced to
ECLIPSE® on the new 50 Peso note. R&D Scientist Michael Hardwick explains.
The earliest WinDOE® images used technology
limited to simple centro-symmetrical images
The new technology platform used enables
asymmetric projected images, such as the ‘$100’
above – a ‘$50’ image appears in the ECLIPSE®
feature on the new Mexican 50 Peso note
The latest development: An animated ECLIPSE® as
seen in the ‘Innovating for 25 Years’ Concept Note
Strong, bold switches. Deep, distinctive imagery. Flat as a tack.
Secure your HORIZON® sample from the Guardian® booth at 2013 Currency Conference or contact [email protected]
Innovia Security - Commercial Services
T +61 3 9303 0700
www.innoviasecurity.com
