Glossary

The value (or number of units) of banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate category (broad categories that measure the money supply in an economy) and comprises only banknotes and coins in circulation outside of the cash reserves held by monetary financial institutions. Cash in circulation also does not include the balance of the central bank’s own banknotes, as they have not been issued.

Describes the logistical handling of banknotes, coins, and items of value. This can include transportation, storage, counting and processing, and packaging. CIT companies are often responsible for the replenishment and servicing of ATMs and are often private security companies.

The action of putting back into circulation, over the counter or through an automated teller machine, banknotes and coins that cash handlers have received either from the public (as payment or as a deposit), or from another cash handler. The cash must be checked for authenticity and sorted for fitness by banks and cash-in-transit companies before being recirculated.

An ATM which can accept, validate and store banknotes which then become available for customers who wish to withdraw cash. Cash recycling ATMs need to comply with recirculation regulations imposed by the central bank. The term recycling is improperly used instead of recirculating but has become commonly accepted.

The intersection of cash and digital technology, whereby software and apps are used to provide access to cash services for withdrawal, deposits and bill payments.

A container used for storing banknotes when in transit or within ATMs and other cash devices. Smart versions act as sophisticated mobile vaults, with geolocation transmitters, remote electronic access keys, PIN pads and intelligent banknote destruction systems.

A method of hologram embossing in which a film of soft resin is applied to a nickel shim then exposed to ultraviolet light, causing the resin to harden by crosslinking. The resin film can then be removed and retains a faithful copy of the surface relief image that was present on the shim. This method of transferring an image from a nickel shim onto a plastic film, results in a bright image and causes very little wear to the shim.

A surface that envelopes the light rays reflected or refracted by a curved mirror or interface.

CBDC accounts that are on the balance sheet of the central bank. The bank controls the ledger and is involved in the execution of retail payments.

A plant material that is used in the manufacture of pulp for papermaking.

An institution that manages the currency and operates the monetary policy of a state or formal monetary union. Central banks can also be tasked with supervising commercial banking systems. Central banks in most developed nations are institutionally independent from political interference.

The virtual form of a fiat currency. A CBDC is an electronic record or digital token of a country’s official currency. As such, it is issued and regulated by the nation’s monetary authority or central bank, and is a direct liability of that bank.

CBDCs held by the public at a central bank in individual bank accounts.

CBDC accounts that are on the balance sheet of the central bank, with private intermediaries handling retail payments and, possibly, opening accounts. The difference between hybrid and intermediate CBDCs relates to whether the central bank keeps a central ledger of all transactions.

CBDCs made available to the public. A general purpose CBDC can be used by the public or institutions.

A CBDC account that is not on the balance sheet of a central bank. Intermediaries hold the liability for the CBDC but are required to deposit 100% of the account at the central bank. Synthetic CBDs are not usually regarded as true CBDCs.

The value of the CBDC is held as a token. The token can be stored in a number of places, such as in an account, wallet, or card. This term can be hard to define at a technical level and some central banks are trying to get away from terms such as token- and account-based because they are so imprecise. There is actually no good definition, but rather many definitions that are conflicting. For example, many now say the bitcoin is not really a token, as it is possible to clone the bitcoin system and have identities attached to all the addresses, but nothing would change in the code. So is that a token or an account?

CBDCs that are first distributed to banks which then distribute them to individuals, much in the same way as cash. At each stage of the process, the CBDC is still a liability of the central bank. The core ledger is held by the central bank, but the private sector acts as payment service provider, delivering accounts and services to the public.

A CBDC issued and used for interbank settlements. It is not available to the public, only to financial institutions that are part of the central bank settlement system.

A liability of a central bank, including banknotes in circulation and deposits of other banks with the central bank.

A ledger (ie. record of financial transactions), kept in one place. Often as part of a closed system, ie. with limited and controlled access, to help safeguard the ledger from unauthorised access. RTGS (real-time gross settlement) systems are, typically, centralised.

A run of banknotes with a change in signatures, series, or varieties without an interruption in the serial numbering. Occasionally, duplicate serial numbers can occur.

Also known as a checksum character or control digit, this is usually the last digit of a number or barcode used to verify that the number is correct. A decoder calculates the checksum by performing a series of mathematical operations on the digits that precede the check digit, and comparing the result of the calculation to the value of the check digit.

Security papers which react to common solvents used to remove ink from a security document.

A hologram created with chromium-based foil for use in high security vehicle registration plates. Generally used in India.

An encrypted message representing a range of characters

The length of time between a banknote being issued and being returned to a cash centre for sorting and a fitness assessment.

The recording, under law, of citizens’ vital events throughout their life, such as birth, death, marriage, divorce and adoption.

A classic hologram is usually made using a 3D object, often a model. A laser beam is split in two and part of it is diverted onto the object, then reflected off it and allowed to combine (or interfere) with the other part of the beam known as the reference beam. The classic hologram is a recording of the interference pattern between the object and reference beams. A well-known example of a classic hologram is the dove used by Visa on its credit cards.

A policy adopted by central banks to maintain the quality of circulating banknotes.

A non-printed area of a substrate which is transparent when viewed against the light. In ID, a clear window is used for applying an additional image of the holder, as a verification filter or for visualising latent scrambled information.

Transfer of ink by a pad or stamp directly onto packaging.

A means of sealing a pack to prevent accidental opening. For anticounterfeiting purposes closure seals need to be tamper evident and secure, or they can easily be replaced.

On-demand access, via the internet, to computing resources – applications, physical servers, virtual servers, data storage, development tools, networking capabilities, and more – hosted at a remote data centre managed by a cloud services provider.

Typically an integral layer of material added to alter, enhance or protect the surface properties of an underlying base substrate or printed surface.

Light that passes through an optical system parallel to the optical axis, for instance where the direction of illumination and direction of observation are in parallel. Coaxial light is used to reveal hidden motifs in retroreflective laminate.

A system of words, letters, figures, or symbols used to represent certain information.

The magnetic field strength necessary to demagnetise a ferromagnetic material that is magnetised to saturation.

The degree to which photons in a beam of light are in phase.

Long strips of metal from which coin blanks are punched.

Usually a small, flat, round piece of metal alloy (or combination of metals), marked with a device and used primarily as legal tender. Issued by government authorities, coins are standardised in weight and composition and are produced at mints.

An ink that changes colour when scraped with a coin or similar metallic object.

A foil application process that does not require heat.

Originally a bookbinding term. In order to produce a complete book, the various parts must be collated in the right order. This is ensured by placing collation marks as check marks (in the case of books, usually at the spine of the book block) in a staggered arrangement from top to bottom. In passports, this type of register mark or position mark is an additional safeguard. It makes it easier to spot whether any pages have been exchanged or removed. It can be invisible under normal light, as a fluorescent overprint, or a visible feature (using normal or fluorescent ink). The combination of collation mark and page numbers is sometimes called floating numeration.

The analysis and measurement of colour. Often used as a relatively cheap field-based technique.

An optically variable effect whereby a material – usually a thin film or ink – changes from one colour to another, or from one colour to clear, when the viewing angle is altered.

A banknote issued by a central bank to mark a special occasion or in remembrance of a person. These banknotes tend to have special features in terms of design, structure and composition. Their production may be limited in number of prints. Not all countries issue commemorative banknotes. The banknote may, or may not, be legal tender.

A financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with corporations or large/middle-sized business to differentiate it from a retail bank and investment bank. Commercial banks include private and public sector banks.

A government agency designated to implement a system, such as a tax stamp and track and trace solution.

The semiconductor technology used in most of today’s integrated circuits.