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Cmte Financial Services (R)
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Examining the Future of Coins and Banknotes

Washington, Sep 5 -

The Monetary Policy and Trade Subcommittee held a hearing today to evaluate the operations of both the U.S. Mint and the Bureau of Engraving and Printing (BEP) and their role in producing U.S. currency, both now and in the future.

“It is the responsibility of Congress to provide oversight of the U.S. Bureau of Engraving and Printing and the U.S. Mint. With new and disruptive products entering the market, demand for coins and paper money may grow at a slower pace and possibly even decrease one day. While no one can predict the future, Congress must ensure that the BEP and Mint are carefully considering this potential disruption and others such as new technologies, which could increase the sophistication of counterfeiting abilities of criminals. I look forward to continuing working with both the BEP and Mint on these important matters,” said Subcommittee Chairman Andy Barr (R-KY).

Key Takeaways

• Coins and banknotes are cornerstones of our economy.
• Changes in the market and in technology have provided alternatives to cash for many transactions, and the Treasury Department needs to keep production and anti-counterfeiting techniques up to date.
• It is vitally important to be able to forecast future demand for coins and banknotes so that the government and Federal Reserve are not caught off-guard by dramatic increases or decreases in demand.

Topline Quotes from Witnesses

“The pace of technological change, market uncertainty, and the increasing sophistication of criminals are key external factors that will influence the future…. In view of these external factors, my vision for the Mint is an organization that is more agile in responses to changing conditions—able to nimbly adapt to challenges while working in unison as ‘One Mint.’” – David J. Ryder, Director, United States Mint

“As we can all attest, the world is becoming increasingly technical…. To keep pace with rapid, technology changes, changes in materials availability, and environmental requirements, the BEP is constantly looking for ways to broaden its own Research and Development and production programs, and acquire appropriate technology and qualified staff capable of taking the agency and its products well into the next century.” – Leonard R. Olijar, Director, Bureau of Engraving and Printing