Orell Füssli Ltd. Security Printing and AUGENTIC GmbH announced their partnership on a “Smart Banknote CBDC” solution including trustwise.io´s Distributed Ledger Technology (DLT) a week ago. A smart banknote is a physical banknote that interacts with a CBDC solution and acts as a transitional device between traditional and CBDC based payment systems. A smart banknote can be used like a classic banknote; however, the owner can redeem his cold wallet (physical banknote) and transfer the note’s value to a digital wallet by scanning the QR code with the private key. Our smart banknote includes a public and a private key represented by QR codes of which the private one is sealed. When the cover of the private key is removed, the QR code scanned, the value of the banknote can be transferred to a digital wallet. Conceptually after this procedure, the smart banknote cannot be transferred anymore.
It is decisive that a smart banknote has the similar conventional physical properties as a traditional banknote. A high level of security is needed to avoid counterfeits. The implementation of security features starts already in the design concept of a banknote or –series.
The key element in the design of our smart banknote prototype, created by the OFS innovation team is speed. A smart banknote needs to transform fast from the conventional payment system into a CBDC based payment system. The peregrine falcon can reach over 320 km/h (200 mph) during its characteristic hunting stoop, making it the fastest animal globally. The chosen falcon in the prototype design depicts the speed. Using an animal portrait pays homage to classic banknote design. The lines behind the falcon are inspired by guilloche, another nod to classic banknote design traditions. Our “Utopian Dual” from the Central Bank of Utopia, is a smart banknote that looks and feels like a traditional banknote. The design gets more “pixelated” around the QR-code, showing how the value can transfer from conventional to digital worlds.