BRAIN - Machine Learning to Measure Banknote Fitness

DNB Betalingsverkeer
Date 27 January 2012

A challenge for central banks is to decide whether used banknotes are still suitable for recirculation, or rather should be shredded and replaced by new ones. Obviously longer use of banknotes reduces the printing costs and environmental burden. Given the huge amounts of banknotes in circulation, determining the fitness of banknotes is not only of importance in cost control, but also poses a serious technical challenge in terms of processing speed and accuracy. With the current technology fit notes are often shredded along with unfit ones. In this paper DNB proposes a fitness detection method that may contribute to a reduction of the amount of unnecessary shreds.