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Bank of England calls on banknote industry to continue innovating

Categories : Innovation contributes to the efficiency of cash
July 3, 2017
Tags : Banknotes, Demand, Innovation, Technology, United Kingdom
In order to stay in the race against e-payments, banknotes must embrace new technologies and use these to their benefit.
Communication Team / Equipo de Comunicación
During her speech at the ATM and Cash Innovation Conference on June 13th, Victoria Cleland – Chief cashier at the Bank of England (BOE) – urged banknote manufacturers to fight back against digital payments and continue innovating in order to stay in the race. 
The demand for cash remains strong worldwide despite the rise of contactless payments, but the BOE warned that this might change if banknotes are considered outdated. Indeed, figures demonstrate that the value of cash transactions has slightly declined over the past years, suggesting that consumers favour e-payments for high-value transactions. Cleland encourages the banknote industry to ensure that paper money remains fit for purpose and uses technology to its benefit. Indeed, Cleland does not see digital technology as a threat but as an opportunity for cash. She cited the example of ATMs, which now enable consumers to recycle money or make cash charity donations. 
The BOE has put their recommendations into practice: the new series of British pounds is made of polymer, an innovative material designed to last longer than traditional cotton paper and better resist to soil and micro-bacteria. Furthermore, various central banks have decided to use digital tools such as mobile apps to promote their banknotes and educate consumers, demonstrating that paper banknotes and technology can take advantage from each other.  
To read the full speech, please click here.