Crises keep demand for cash high, banknote machine company says

Koenig & Bauer AG

24/06/2022 16:22

By Cecile Mantovani
    LAUSANNE, June 24 (Reuters) - There's still a lot of life
left in the traditional bank note, printing company Koenig &
Bauer Banknote Solutions said, with coronavirus and the war in
Ukraine driving up demand for paper money despite competition
from other forms of payment.
    Nearly 90% of the worlds' banknotes are estimated to be
printed at least in some part by the company's machines, with
production levels of paper money increasing despite the rise of
online payments, digital currencies and contactless ways to pay.
    "Banknotes were there from the beginning and are still
there," chief executive Eric Boissonnas said, as the company
marked its 70th anniversary of operating in Switzerland. 
    "We see today a 2% to 5% increase in their use every year
and we predict it will be like that for the next 10 to 15
years."
    Its machines are used by virtually every country in the
world, helping to produce U.S. dollars, Swiss francs, euros and
other currencies which have the latest security features to
protect against forgery.
    "During COVID production of notes had to go up because
demand was much higher," Boissonnas said.
    "If we look in the region around Ukraine, demand for
banknotes has been multiplied," he told Reuters. "As soon as you
have a crisis, people take cash to be sure they can pay in every
situation."
    The business, now part of the Germany's Koenig & Bauer Group
 SKBG.DE , established itself in Lausanne in 1952, where it now
employs 140 people.
    

 (Reporting by Cecile Mantovani; Writing by John Revill;
Editing by Alison Williams)
 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))