U.S. issues new $20 bill featuring color, added security
The newly designed U.S. $20 bill went into circulation October 9, featuring subtle background colors and other new security features that aim to thwart potential counterfeiters.
"We are confident this is the most secure currency the United States has ever issued," Michael Lambert, financial services manager of the Federal Reserve Board, told reporters.
He spoke at an October 9 press event in Washington at which a new $20 bill was used to purchase postage stamps from a vending machine. Similar events were held at 30 other locations throughout the United States as part of an ongoing public education campaign -- both domestic and global -- on the currency's new look and security features.
In an October 9 news release, the U.S. Bureau of Engraving and Printing (BEP) said that the issue of the new $20 bill would be marked by international events later in October in dollarized economies and in countries where U.S. currency is widely held, including Russia and in Latin America.
Officials emphasized that all U.S. notes, old and new, will be honored at their full face value. The United States has never devalued its currency and will not do so now, officials said. As the new currency is phased in, the Federal Reserve will retire old notes when they are returned through the banking system.
"While much of the public will be anxious to see and handle this newly designed $20 bill, we want to emphasize that older-design $20 notes are still in circulation and still maintain their value," Marsha Reidhill, the Federal Reserve assistant director for cash and fiscal agency, said in the BEP news release. "The stability and integrity of U.S. currency has kept worldwide trust and confidence high, and the government is committed to keeping it that way."
The most noticeable difference in the new $20 notes is the subtle green, peach and blue colors featured in the background. The new $20 design also retains three security features that were introduced in the late 1990s: a watermark, a security thread visible from both sides, and color-shifting ink.
New versions of the $50 and $100 bills are expected to follow in 2004 and 2005. The Treasury Department says it plans to update the look of U.S. bills every seven to 10 years to stay ahead of high-tech counterfeiters.
According to the BEP, currency counterfeiters are increasingly turning to digital methods as advances in technology make digital counterfeiting of currency easier and cheaper. In 1995, less than 1 percent of counterfeit notes detected in the U.S. were digitally produced. By 2002, that number had grown to nearly 40 percent, the news release said.
The government estimates that counterfeit notes in circulation worldwide represent about one or two of every 10,000 genuine notes. An estimated $650 billion in U.S. currency is in circulation worldwide at any given time, officials say.