The United States Bureau of Engraving and Printing (BEP) has announced the redesign of the 20 and 100 dollar bills, two of the most widely used denominations in the world. These new versions will incorporate advanced security features and will be the first in a series of updates aimed at mitigating fraud. According to the Federal Reserve‘s schedule, the $20 bill will enter into circulation in 2030, while the $100 bill will do so in 2034. The modernization of these bills is part of a long-term plan to strengthen confidence in the US dollar and make counterfeiting more difficult, a growing threat in the global economy.
Why will the $20 and $100 bills be redesigned first?
Banknote counterfeiting has evolved with advances in technology, forcing the authorities to implement new strategies to preserve the integrity of the dollar. The 20 and 100 dollar bills have historically been the most affected by illegal copies, due to their widespread circulation in international trade and daily transactions. To address this problem, the BEP has worked on developing new security features, including:
- Enhanced security thread, visible when the banknote is held up to the light.
- Colour-shifting ink, with shades that are more difficult to replicate.
- 3D security band, which will show moving patterns when the banknote is tilted.
- Microprinting invisible to the naked eye, detectable with specialized devices.
- New tactile raised design, which will allow visually impaired people to easily identify the banknotes.
When will the new banknotes start to circulate?
The Federal Reserve‘s launch schedule states that the introduction of these banknotes will be gradual, according to the following schedule:
- $20 bill: available from 2030.
- $100 bill: in circulation from 2034.
The modernization of paper money is a process that requires years of testing and coordination with banks, businesses and ATM manufacturers to ensure a smooth transition. It is estimated that more than 10 million machines worldwide will need to be updated to recognize and accept the new designs.
What will happen to the current $20 and $100 bills?
Despite the redesign, the current $20 and $100 bills will continue to be valid and accepted in shops and banks until the transition is complete. It will not be necessary to change them immediately, as the Federal Reserve will keep both designs in circulation for several years.
However, as the launch date for the new banknotes approaches, the US government will provide detailed information on the process of phasing out the older banknotes.
How does this change affect collectors and the numismatic market?
The introduction of a new design always impacts on the value of old banknotes within the collectors’ market. In many cases, discontinued banknotes with printing errors, unusual signatures or rare serial numbers can increase their price significantly. For example, in the past, certain $100 bills from the 1996 series reached values of up to $2 million at specialized auctions.
Those interested in numismatics are advised to keep an eye out for the possible revaluation of current editions, especially those with unusual characteristics. For more articles related, do not hesitate to visit the economy section of this digital newspaper.
