The U.S. Treasury Department, in collaboration with the Federal Reserve, has launched a major project to revamp the appearance of the $20, $50 and $100 bill. The project aims to add security to the dollar in the face of growing counterfeiting threats, as well as to maintain the dollar’s hegemony as the world’s reference currency. The rollout of the path to the adoption of such banknotes will take place over the next 15 years, ensuring an orderly and seamless transition for businesses, financial institutions and the public.
U.S. $20, $50 and $100 bills redesigned to protect the economy and financial system
The redesign of banknotes is more than just a design change, it is a reaction to emerging threats and changing economic needs. This is the main reason why the redesign is not vanity but a way to try to reassure society in the face of increasingly sophisticated counterfeiting techniques. Given the advancement of high-resolution printing techniques and the widespread use of duplication software resources, we believe that banknotes today are increasingly vulnerable.
In 2022, for example, the Federal Reserve estimated interventions of about $120 million in counterfeit banknotes worldwide. It should be noted that this figure is small compared to the $2.3 trillion in circulation, but it serves to show how these threats need to be addressed.
Advanced security technologies in new dollar bills to protect U.S. currency against counterfeiting
To mitigate these risks, the new bills will include the following security innovations:
- Three-dimensional security ribbons: already present on the $100 bill and will be expanded to other denominations.
- Complex watermarks: more complicated and more difficult to reproduce and will have more graphics in view.
- Microprinting: very small text only reproducible with specific and concrete equipment.
- Color-shifting ink: dollar-identifying technology that will be further enhanced and is more effective.
- Tactile elements: designed to aid the correct identification of denominations for the visually impaired and provide an additional layer of security.
The U.S. dollar is the backbone of global trade and finance, with this bill accounting for approximately 60 percent of international foreign exchange reserves. Protecting its integrity is critical not only to maintain domestic confidence, but also to ensure that the U.S. dollar maintains its significance in international markets.
The detailed timeline of dollar bill redesign and its impact on U.S. currency circulation
The redesign is a complex process that requires years of planning, from initial refinement through production and printing. According to the BEP schedule, the launch dates are as follows:
- 2026: Redesign of the $10 bill, with possible advanced tactile and security enhancements.
- 2028: Introduction of the new $50 bill, which will include more sophisticated holographic threads.
- 2030: Redesign of the $20 bill, with possible interactive educational features associated with augmented reality.
- 2032-2035: Renewal of the $5 bill, with a focus on print modes accessible to people with visual impairments.
- 2034-2038: Refresh of the $100 bill, the most counterfeited denomination outside the United States.
With a staggered schedule like this, we get a smooth introduction with enough time to educate the population about the new features.
What will happen to old dollar bills during the transition to the new designs
One of the most common questions asked is what will happen to the bills now in circulation from the time the bills with the new designs are used. The answer provided by the Federal Reserve could not be clearer: any and all existing bills will continue to be accepted as legal tender.
Banknotes currently in circulation will continue to be fully valid for transactions as long as they are in an acceptable state of preservation.
Banks and financial institutions will play a key role in this area, as they will be responsible for the recirculation of existing banknotes and will facilitate the exchange of existing banknotes for the new banknote designs.
The coexistence of the existing banknotes with the new designs is the norm when a new modification of the currencies is carried out, thus trying to complicate as little as possible the existence of users and businesses. The U.S. dollar is the world’s most widely used reserve currency, accounting for an estimated 60% of the world’s reserves. In order to maintain its status as a reserve currency and a pillar of the global financial system, it is essential to take care of its security. This will have an economic impact on the U.S. and also on international trade:
- Reducing economic losses: it is estimated that counterfeiting generates losses in excess of $200 million for each passing year. Existing new technologies are designed to eliminate risks.
- Increasing international confidence: The new banknotes will send a clear message of stability and leadership, increasing the dollar’s position vis-à-vis other emerging currencies.
- Adapting to a changing technological environment: This redesign is a reminder of the United States’ willingness to embrace innovation and security.
Preparing for change: resources and tools for understanding the new dollar bills
Educating the public is a priority during this transition. The Bureau of Engraving and Printing (BEP) and the U.S. Currency Education Program offer educational materials for understanding the new banknote features.
Additional information is available at:
This type of modification to the dollar bills not only provides greater security for the bills themselves, but also highlights who the United States is and its commitment to economic and technological excellence.
