Jean-Michel Grimal

Chips in banknotes for a banknote electronic signature

A lot of information can be found in the media about the possibility of using micro-chips in banknotes. This mostly comes from chip manufacturers whose technology is becoming mature for this application. A lot of patents have been applied therefore but what must be noticed is that all these patents concern the processes to insert chips in banknotes and not a lot is said about the product itself and for what use. The Banque de France is a Central Bank involved in all tasks concerning banknotes from design, production, issue, recirculation and sorting, action against counterfeiting and finally destruction. These activities concern, of course, the banknotes in circulation in France (formerly the French francs notes, presently the Euro notes as Banque de France is part of the Eurosystem) and in other countries in the world. The Banque de France approach in looking to the future of chips in banknotes is at first a product approach. Banknotes are means of payment for which security of authentication is fundamental. They could carry chips to provide more security in the transactions but without altering their nature: the anonyminity and immediacy of the transactions.