Do we need new and more sophisticated security features for banknotes or is the present level of security sufficient for the future?

I am sure that the level of security of banknotes needs to be updated continuously, since technological progress is giving counterfeiters ever better ways to imitate genuine banknotes.

I think that central banks should introduce more advanced security features, mainly in two ways: on one side, by giving more and more importance to the use of security features characterised by images or patterns visible to the naked eye but practically impossible to reproduce, so as to allow ordinary people to easily recognise the fake banknotes.

On the other, by inserting into the banknotes new second- and third-level effects, so as to print codes that are increasingly difficult to imitate, but easy to read when using the appropriate tools.

What new security features could be integrated in ID cards and passports?

There are new second- and third-level security features integrable in ID cards and passports that are visible and readable by using detectors such as a smartphone torch and portable IR cameras.

These effects are obtainable with inks based on uncommon raw materials difficult to find on the market and, as a consequence, complicated to reproduce.

The printing process is also important, not only for the quality and the level of details, but in order to determine the effectiveness of the security feature.

Moreover, the connection of these invisible effects to the naked eye with the personalised information of the document, such as the number and the photograph, would increase the level of security of ID cards and passports.

How do you see the future of banknotes in a nutshell?

Banknotes and digital means of payment are popular payment instruments in their own right. They complement each other and offer to the customer a wide variety of attractive alternatives and thus convenience. This needs to be maintained and secured independently.

The physical banknote has always been and remains the backbone of payment in daily life and a trusted means for store of value. During the pandemic, we could witness this being reaffirmed all over the world.

As an industry we need to continue to further invest into banknote security in order to prevent counterfeiting and to make the cash cycle even more efficient.

The need and positive issuer demand for intelligent security features which combine attractive aesthetics and publicly recognised dynamic design with optical security is as strong as ever.

Stopping the counterfeit at first pass must remain a high priority. And with machine readable security, for example in sophisticated security threads, and the issuers Level 3 security measures, banknote security is even invigorated.

What are the next important challenges for the security printing industry?

Soaring energy costs are influencing the whole industry. They the big challenge for 2022 and maybe longer.

Do you think CBDC will be introduced in your country and how will this affect your company?

I do not think that CBDC will be introduced shortly since Austria is very much cash-oriented. But, in a mid-term view, digital currency will be introduced and will grow. Next generations will use digital payment more than current generations. This will affect the whole banknote industry.

How is the increased use of digital forms of payment affecting the fight against counterfeiting of physical banknotes?

I think it will not be affecting it too much. Physical banknotes will be necessary and play an important role even if digital payments grow.

Think about a possible black-out scenario. In that case, everybody will be well advised to have enough cash.

Therefore counterfeiting will still play a role.

Do we need new and more sophisticated security features for banknotes or is the present level of security sufficient for the future?

The development of new security features has to continue. We always need new security features to keep and increase the level of banknote security.

How could banknotes be made more popular?

By explaining the advantages of banknotes, especially to young people: much safer than digital payments, easy to handle, always available even in a crisis situation like a power outage, payment without bank account or identification etc.

Take a look at the ICA initiative Cash Matters for many good arguments.

Do you think that physical ID documents will continue to be used even if we have digital passports/ID cards?

By physical ID document, we typically mean a document issued in a hard-copy form factor. This is a passport booklet or a card.

These booklets and cards can be both conventional (paper/plastic, without a chip) or digital/electronic (with an embedded chip).

If we talk about the future application of these two types of documents - chip-less and chip-based - then, without doubt, electronic documents will eventually replace traditional ones.

Digital documents, carrying a chip inside, enable higher data security and thus may reduce risks related to identity fraud and illegal border crossing.

However, if we compare physical digital (chip-based) documents with virtual mobile ID credentials, then we will see the following trend: mobile ID is now and will be recommended to be used as a companion to the physical eID rather than a full replacement.

Mobile ID use has many limitations, which still have to be solved. For instance, now it can be used anywhere mobile ID is accepted, which is still a very limited choice of use cases due to security reasons. Also, the smartphone battery can drain any time.

Of course, mobile ID is convenient for basic verification purposes (like verifying age). But the physical ID should still be considered as a back-up, especially for interactions with law enforcement and other government authorities.

And let’s also keep in mind: the more different means of identification we have – the more doors for fraud and malicious interference we create.

Do you think that physical ID documents will continue to be used even if we have digital passports/ID cards?

While digital identity tokens will be introduced to complement their physical counterparts, I am convinced that physical passports and ID cards are here to stay.

In my opinion, they will remain the indispensable root of trust to verify identities - for at least another 5-10 years.

It is possible that physical ID documents will be used less often in daily life, and that digital passports or digital IDs will be resorted to more frequently, for example, to obtain access to convenient services.

Yet, the physical token is always necessary as a secure backup – and obviously, in every case where people do not have a smartphone or other means of carrying a digital ID.

Digital credentials derived from physical ID or travel documents, such as the Digital Travel Credential (DTC) or mobile Drivers Licenses (mDL), nowadays combine the best of both worlds: physical security as the root of trust and digital functionality for added convenience.

What new security features could be integrated in ID cards and passports?

In order to stay far ahead of counterfeiters, new security features should be based on secret technologies and processes that are not commercially available and not in the public domain.

A primary example of advanced features which build on this well-established and secure platform are so-called combination technologies, for example, KINEGRAM features that combine partial metallisation and print colors in perfect register to diffractive, visual security effects.

These features can be integrated within the document design in a harmonious way and are easy to verify and easy to communicate.

With appropriate design, such security features enable new functionalities such as Optical Machine Authentication (OMA) or Optical Phone Authentication (OPA).

This makes them even more efficient and even harder to counterfeit.

Do we need new and more sophisticated security features for banknotes or is the present level of security sufficient for the future?

Most probably security features will evolve as new technologies appear, since main manufacturers are always trying to present new features and capabilities not seen before.

The level of security will be never sufficient because counterfeit is always an alive risk, and the only way to skip it is through continuous research and introducing new security features.

So, coming back to the question, if new and more sophisticated features are needed, undoubtedly we have to say yes. They will be needed

In the security market a leading supplier has always need to be attentive, not only to innovations that can be applied to different machines based on existing technologies, but also open to hear from other experts’ interesting ideas based on their wide expertise that can be put in practice from more than one party.

This is a real fact due to sophisticated combination of individual equipment’s to ensure an excellent final solution.

Do you think that in the near future we will all carry our ID documents on our smartphones?

This is a difficult question to answer. Personally, I think it will be a battle to demonstrate which alternative is more secure and less critical of counterfeit.

Carrying the ID smartphone is always comfortable for users as it means not bringing too many things physically, but it does not necessarily imply to be the safest way to prove that the document is original.

The ability of main players to defend what alternative is the best will be essential, and will incline the key decision makers in one or another direction.

Countries, based on their own cultural beliefs, will take an important role in all of this, and not necessarily all countries will take the same decision around this matter.

Do you think that in the near future we will all carry our ID documents on our smartphones?

Yes, but not exclusively. International aviation organisations like IATA and ICAO are developing digital passport solutions for cross-border travel.

Air passengers are more likely to have access to smartphones and Internet, and travel with electronic boarding cards is already second nature for many.

Smartphone manufacturers are developing next generation phones with wallets to store identity and health credentials, which will facilitate a smooth and quick transition.

But digital society is also driven by the need to simplify and broaden access to services. This will only be possible with digital identity solutions that are fully inclusive and available to all.

Even in technologically advanced countries around 15% of people do not have a smartphone and 20% lack reliable Internet. Successful digital identity solutions must work for everyone and not exclude disadvantaged groups.

What are the biggest challenges in designing/introducing digital ID documents?

One billion people today are unable to access public or private services due to lack of formal identity. Inclusive digital identity solutions will allow everyone to have equal access to digital resources and online/offline services.

Governments or any official credential issuer wishing to deliver a fully trusted digital identity solution that is secure and privacy-preserving by design, face a double challenge:

-to ensure inclusivity, it must be fully interoperable, built on open standards, scalable and easy to integrate with existing systems.

-to ensure rapid and broad adoption, it must be accessible to everyone and provide an intuitive and simple user experience.

Best-in-class digital identity solutions are decentralised and designed for people while preserving sovereign authority.