What Happens When Central Banks Issue New Notes? A Look into Design, Security & Circulation

In this blog, we explore why and how central banks issue new banknotes—and what it means for the money-changing industry and the public.

Why Do Central Banks Release New Notes?
New banknote designs are often introduced to enhance security features, prevent counterfeiting, and reflect national identity or milestones. Whether it's polymer upgrades or redesigned currency series, these updates help maintain confidence in physical cash.

For example, MAS periodically refreshes Singapore’s banknotes to include enhanced security threads, microtext, or commemorative designs.

Security Is the Priority
Modern banknotes incorporate advanced security features like watermarks, holograms, tactile elements for the visually impaired, and color-shifting inks. These updates make it easier for the public to authenticate notes and harder for counterfeiters to replicate them.

Money changers play a crucial role in verifying and educating customers about these features.

What It Means for Money Changers
When a new series is launched, licensed money changers must adapt quickly. This includes:

1. Familiarizing staff with new designs and security features
2. Adjusting currency sorting and verification systems
3. Educating customers and addressing questions or concerns

MCA helps its members stay prepared with timely updates, training, and support whenever a new issuance is announced.

Old Notes Don’t Vanish Overnight
Central banks typically allow old series notes to remain legal tender for a transitional period or even indefinitely. Money changers must accept, identify, and sort both old and new notes during this phase.

Proper handling ensures smooth circulation and customer confidence throughout the transition.

Conclusion
New banknotes are more than aesthetic updates—they’re vital tools for secure transactions and economic trust. With the right preparation and guidance, money changers help ensure every note in your hand is safe, valid, and trusted.

Need support understanding or handling new currency issues?
The Money Changers Association (Singapore) is here to help. Stay informed and empowered with MCA updates, training, and industry support.