Money printer hopes coronavirus might boost demand for fresh bank notes

Thursday 18 June 2020 12:49 CET | News

De La Rue, a British company that manufactures paper and security printed products including banknotes, passports, and tax stamps, has announced plans to boost its money printing activity.

The company hopes that countries may replace banknotes more frequently because of the coronavirus crisis, and as a result it plans to raise GBP 100 mln as part of a turnaround plan focused on shifting to plastic notes. De La Rue shares rose more than 4.5% following the announcements.

Overall, the business expected demand to grow around the world for its plastic banknotes as governments try to slow the spread of coronavirus.

But some experts say the virus will speed up the decline in cash use in favour of digital payments. The Bank of England and the World Health Organisation have both stressed that the risk of virus transmission from banknotes and coins is no greater than for any other items and have repeated advice on regular hand washing. Still, there have been no tests on how the virus sticks to paper or polymer, and there is no scientific evidence that Covid-19 can be transmitted via bank notes, Mr Vacher, the CEO of De La Rue said for BBC.

De La Rue said it would begin a consultation process with staff about stopping banknote production at its plant. It expects banknote production to stop at the plant by the end of 2020.

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Keywords: digital payments, bank, payments , banknotes, coronavirus, money printing, UK
Categories: Banking & Fintech
Countries: United Kingdom
This article is part of category

Banking & Fintech