Q: Why is the U.S. releasing a newly designed $20 bill?
A: The Federal Reserve System and Bureau of Engraving and Printing are working to stay ahead of currency counterfeiters who are turning to sophisticated, cheaper, digital methods to launder their tainted notes into the world economy. In 1995, less than one percent of counterfeit notes detected in the U.S. were produced digitally. By 2002, this number grew to nearly 40 percent. According to the U.S. Secret Service, only one in 10,000 bills is bogus. However, the U.S. government seized roughly $130 million in unused counterfeit notes last year. Nearly $44 million more were taken out of circulation. By changing the look of the $20 note and incorporating new security features, the federal government intends to curb the ability of counterfeiters to pollute the U.S. money supply. To alert consumers about the new look of the $20 bill and assure people the colorful note is authentic, legal tender, the federal government has launched an extensive publicity campaign. Starting on October 9, about $19 billion worth of the new notes entered the U.S economy. Folks withdrawing money at their local banks or exchanging cash at retail outlets soon will slide colorful new bills into their wallets. The fresh design may take some people by surprise. It’s the first time in modern history the U.S. "greenback" uses colors other than green and black. The new $20 bills feature green, peach and blue in the background. Besides the obvious color changes used to add complexity to the note, other design elements were incorporated to thwart counterfeiting and protect the integrity of the U.S. currency system.
Q: How can consumers and small businesses shield themselves against counterfeit notes?
A: The new $20 bill keeps three important security features first introduced in the late 1990s. It’s a good idea to check your cash to ensure it includes the following: watermark, a faint image similar to the large portrait and visible from both sides when held up to the light; security thread, vertical strip of plastic woven in the paper with "USA TWENTY" and a small flag discernible along the thread; color-shifting ink, the numerical "20" in the lower-right corner on the face of the bill changes from copper to green when the bill is tilted. The new bills keep the traditional size and appearance of U.S. currency, including an enhanced portrait of Andrew Jackson and the White House. New symbols of freedom also made their way into the redesign, including a blue eagle and a metallic green eagle and shield. Consumers can rest assured the old $20 notes will maintain their value for good. They eventually will leave circulation as they become worn from wear and tear. Colors will be incorporated in new designs for the $50 and $100 bills slated for release in 2004 and 2005. Iowans with visual impairments may find it easier to tell denominations apart with the new colors. Although redesigns are under consideration for the $5 and $10 notes, no changes are scheduled for the $1 and $2 bills.