The European Central Bank (ECB) has launched a redesign of euro banknotes aimed at making them more secure, sustainable, and inclusive, with 10 new design proposals put to a public vote until Sept. 21 and the winner to be announced by the end of the year.
The euro has served as the official currency in 21 out of the 27 EU member states since it entered circulation in 2002.
Austria, Belgium, Bulgaria, Croatia, Estonia, Finland, France, Germany, Greece, the Greek Cypriot Administration, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain use the euro.
The bloc’s currency is being used by over 357 million people and serves as the world’s second most important reserve currency, accounting for 20% of global reserves, behind the US dollar.
The member states using the euro are collectively known as the eurozone, whose monetary policy is managed by the Eurosystem, which consists of the ECB and the central banks of the respective member states.
The ECB ensures price stability in the eurozone, supervises the banking sector, issues banknotes, ensures the security of payment systems, and conducts research on the digital euro.
Currently, six denominations of euro banknotes are in circulation: €5, €10, €20, €50, €100 and €200, and feature different colors and sizes.
Euro coins are issued in denominations of one, two, five, 10, 20, and 50 cents, as well as one and two euros.
Printing of the highest-denomination €500 banknote was halted in 2019 amid concerns over its use in money laundering and terrorist financing, although it remains legal tender and can still be used for payments or exchanged at national central banks.
The ECB is redesigning the banknotes following their introduction in 2002 and the subsequent introduction of the Europa series, which incorporated enhanced anti-counterfeiting features in 2013 and 2019.
The ECB released 10 new design proposals for the third generation of euro banknotes to gauge public opinion through a public vote.
The ECB Governing Council is expected to choose the final design by the end of the year, taking into account public feedback and expert assessments.
The new banknotes will enter circulation following several years of preparation.
The ECB aims to incorporate more advanced security features into the new series, along with materials that offer longer lifespans and features that are more accessible to everyone, including those with visual impairments.
More than 30 billion euro banknotes worth over €1.5 trillion ($1.7 trillion) are in circulation, according to the ECB.
ECB President Christine Lagarde says the design of the banknotes symbolizes European integration, with windows, doors, and bridges on the banknotes representing openness and cooperation. She said, however, that after more than 20 years, the time had come for the banknotes to become more relatable to Europeans of all ages and backgrounds.
The ECB says the primary reason for the redesign is to strengthen protection against counterfeiting, while the new series will feature more durable materials and measures to reduce its environmental impact and production costs.
Current banknotes will remain in circulation for a long time after the new series is introduced, while old banknotes will continue to be legal and retain their value.
The new series will comprise €5, €10, €20, €50, €100 and €200 banknotes.
The billions of banknotes used daily across the continent will be gradually replaced, while the redesign is not expected to affect monetary policy or the value of the currency.
The ECB is pursuing a digital euro project and investing in cash at the same time, signaling that cash will be a core part of the system for many years to come.
