UK wants to combine cash recycling, currency authentication
As the efficiency of cash recycling increases in popularity across Europe, the Bank of England is looking to get on board. The recycling process would allow cash paid into a shop to be deposited to a nearby ATM where it is recycled for local reuse — without removal first to a cash center for counting, authentication and fitness assessment.
However, without that removal it becomes hugely important to ensure that the ATM network can sort fit, unfit and counterfeit notes. So, as a precursor to the introduction of cash recycling, the U.K.'s Strategic Cash Group will commence a public consultation for a new policy on banknote authentication, said a report by the Economic Voice.
With the code in place, the U.K. banking system will have a robust policy for local recycling and "a new pillar" to support continuing confidence in the nation's currency. Salmon said.
The consultation will run through May 20. A formal response will be published in July 2013, alongside the final code.