smartBN: Intelligenter Schutz im Zahlungsverkehr durch smarte Banknoten

Background of the R&D Project „Smart Protection in Payment Transactions by Smart Banknotes“ (smartBN) and the Underlying Problem Definition
Due to their reliability, anonymity, and authenticity in the payment process, banknotes are accepted and spread worldwide. In Europe alone, the annual handling costs for the banknote circulation, from production to destruction, amount to about 90 billion EUR. An innovation leap in this process chain would be the realization of a “smart banknote” (smartBN), being safer and increasing the lifetime of a banknote. Until now, alternative eMoney payment systems are not able to replace cash characteristics.

Project Idea, Planned Approach, and Possible Results
Researchers from the Institute Industrial IT (inIT) of the OWL University of Applied Sciences and partners from industry and research are working together to create new, smart banknotes which are intelligent and able to generate an own digital product memory by imprinted, dynamic control elements. As long as the banknotes are in circulation, they store different information which can be globally retrieved from them. Consumers and automatic teller machines may use these elements to confirm banknotes’ authenticity. This goal is to be achieved by new methods in banknote production on the one hand and new algorithms which equip these banknotes with (partially) active, local intelligence on the other. The objective of the project is a significant safety-enhancing added value of a banknote. The approach to be studied may be later applied to other securities such as cheques, tickets, coupons, and packages.

Benefit for the Ostwestfalen-Lippe University of Applied Sciences: Scientific and Economical Relevance
In this new research approach, sensory detection/activation and authentication procedures and physico-chemical approaches for age determination and coding are researched and developed. The research project is characterised by a clear application orientation, economical potential, and a high scientific and technical level. The project complements and strengthens the competence areas of Security Technologies and Optical Document Security at Institute Industrial IT (inIT), since industrial information technologies and security aspects become more and more important in the context of “Digital Transformation/Industry 4.0”.

Benefit for the Practice Partners and Further Third Parties
The OWL University of Applied Sciences will conduct interdisciplinary research work with the received funds. Hard and soft sensor technologies and actuators/activation systems are to be realised in cooperation with the industrial partners Koenig & Bauer (KBA) and Wincor Nixdorf (WN). A corresponding market implementation is therefore guaranteed.

In cooperation with the Institute for Food Technology NRW (ILT.NRW) Industry 4.0 concepts and know-how from Life Science Technology are brought together in order to achieve the goals. Furthermore, the project is closely linked with the leading-edge cluster “it’s OWL”.