Banknotes and Coins

In the course of the next two years the Nationalbank is issuing new 50-krone, 100-krone and 1,000-krone banknotes. The 1,000-krone banknote will be issued in the autumn of 1998.

The cash supply system is being revised. This has e.g. resulted in the establishment of cash depots in the Copenhagen area.

The New Banknote Series

On September 12, 1997 the Nationalbank issued a new 500-krone banknote as the second note in the new series. The first, the 200-krone note, was issued on March 10, 1997, cf. the 1996 Annual Report. The face of the 500-krone note features a portrait of the nuclear physicist Niels Bohr, one of the most distinguished Danish scientists of this century. He received the Nobel Prize in 1922. The motif on the reverse is inspired by a stone relief on the font of Lihme Church in Salling, Denmark. The motif shows a man and a dragon fighting.

The other three notes in the new series will be issued over the next two years; the 1,000-krone note in the autumn of 1998, and the 50-krone and 100-krone notes in 1999.

The old note series is being replaced because new developments in graphic technology have created the need for better protection of banknotes against counterfeiting. The new note series has a number of new security features, while well-known security features have been improved. The new features include a security thread which changes colour, strong colours, a hidden image and microprinted text. The traditional security features are a watermark and a hidden security thread. The portrait, the rosette and the shadowprinted text, as well as the paper used for the notes, all contribute to making a note recognizable as a document of value.

When the 200-krone and 500-krone notes were issued press conferences were held and folders distributed to all households in order to give information about the new banknotes. TV and radio advertising spots were also used. So far, the costs of this information have totalled approximately kr. 10 million. Further information will be given when the next banknotes in the new series are issued.

The new 200-krone and 500-krone notes have shown a tendency to curl, which disappears after they have been used for a while. This is inconvenient in the general handling of banknotes and in cash dispensing machines. The Nationalbank is seeking to solve this problem by changing the properties of the paper used for the notes and by adjusting the production process.

Counterfeiting of Banknotes and Coins

There is no real history of counterfeiting in Denmark. From 1993 to 1996 only around 100 counterfeit Danish banknotes per year were found to be in circulation. In 1997 this number almost quadrupled. The increase is attributable to a small number of cases where a large number of 1,000-krone notes were put into circulation. At the end of 1997 several counterfeit 20-krone coins were confiscated.

Counterfeiting or attempted counterfeiting is a serious crime which can incur a penalty under Sections 166-170 of the Danish Penal Code. In particularly serious cases counterfeiters can receive prison sentences of up to 12 years. This is one of the most severe maximum penalties stipulated in the Danish Penal Code. The courts will normally impose unmitigated prison sentences for manufacturing and issuing counterfeit money or for being an accessory thereto.

Today many schools and after-school institutions have equipment which can be used to copy banknotes and there have been cases where children and young people have tried to copy money "for fun". A few of these counterfeit coins and banknotes have entered into circulation. These cases involving children and young people are very unfortunate, because the perpetrators do not become aware of the seriousness of their actions until it is too late. Even though the money has been counterfeited for fun, or without thought of the consequences, counterfeiting still constitutes a serious violation of the Danish Penal Code.

For this reason the Nationalbank, in cooperation with the Crime Prevention Council, has issued a poster which in September 1997 was sent to all Danish elementary and secondary schools, technical colleges, commercial colleges, etc. The Nationalbank hopes that this information campaign will contribute to reducing the number of children and young people facing serious criminal charges.

Use of Banknotes for Illustration Purposes

The Nationalbank holds the copyright to the Danish banknotes and finds it very important that copies of banknotes do not risk being mistaken for real banknotes.

The guidelines for use of banknotes for illustration purposes were tightened in 1992. It was no longer permitted to reproduce banknotes, or parts thereof, in advertisements, printed matter or advertising material. This measure was introduced as the result of a communication from Interpol to the central banks requesting the latter to reduce the risk of counterfeiting in connection with reproduction of banknotes.

This practice has been tried at the Supreme Court, which stated in a ruling in the spring of 1997 that reproduction of banknotes should be viewed against the background that the Nationalbank holds the copyright to the banknotes, but at the same time it must be taken into account that the banknotes are a symbol of financial value, and it has to be possible to use banknotes to illustrate this.

The Nationalbank has adjusted its practice in accordance with the Supreme Court decision. In order for reproductions of banknotes for illustration purposes to be easily distinguishable from real banknotes the Nationalbank recommends that banknotes be reproduced in dimensions of maximum half size or at least double the size measured as the area of the banknote, or that maximum one third of the entire banknote be shown. For reproductions intended to provide information on banknotes these guidelines may be deviated from as agreed with the Nationalbank.

The Nationalbank has issued a brochure (available only in Danish) on the rules for the use of banknotes for illustration purposes. This brochure has been sent to a number of trade organizations and other parties whose activities involve printed matter, commercials, advertisements, etc.

(to be continued)