The European Central Bank (ECB) is in talks with Hitachi Ltd. about embedding radio tags in euro bank notes to prevent counterfeiting of euros.
The ECB is deeply concerned about counterfeiting and money laundering and is said to be looking at radio tag technology. Last year, Greek authorities were confronted with of 2,411 counterfeiting cases and seized 4,776 counterfeit bank notes while authorities in Poland nabbed a gang suspected of making and putting over a million fake euros into circulation.
To add to the problem, businesses also find it hard to judge a note’s authenticity as current equipment cannot tell between bogus currency and old notes with worn-out security marks. Among the security features in current euros are threads visible under ultraviolet light.
According to Prianka Chopra, an analyst with market research firm Frost and Sullivan the main objective is to determine the authenticity of money and to
stop counterfeits.
RFID (Radio Frequency Identification) tags also have the ability of recording information such as details of the transactions the paper note has been involved in. It would, therefore, also prevent money-laundering, make it possible to track illegal transactions and even prevent kidnappers demanding unmarked bills.
Besides acting as a digital watermark, the use of radio chips could speed up routine bank processes such as counting. With such tags, a stack of notes can be passed through a reader with the sum added in a split-second, similar to how inventory is tracked in an RFID-based system.
Hitachi is developing noncontact chips for use in bank notes and other paper documents, Kantaro Tanii, confirmed the company’s corporate communications manager for Europe. Hitachi’s Web site describes a 0.4-mm by 0.4-mm by 60-micron radio frequency identification chip, called the Mu Chip, that works in the 2.45-GHz frequency band and has a 128-bit ROM for storing its identity number. It was originally conceived as a bank-note-tracking device but could also be used in passports, driver’s licenses and other official documents.
