The Cash Product Office (CPO), located at the Federal Bank of San Francisco, provides strategic leadership for cash by formulating and implementing service level policies, operational guidance, and technology strategies for US currency and coin services provided by Federal Reserve Banks nationally and internationally.
It is responsible on behalf of the Federal Reserve Board for cash operations at all 12 Federal Reserve Banks. Between them, these have 28 processing and distribution centres throughout the US, and process around 33 billion notes per year. Around 85% of those processed are fit and returned to circulation, and the remainder destroyed.
‘This NextGen machine will be the foundation for our currency processing operations well into the future’, said Mark Gould, CPO Product Director. ‘Effective cash processing equipment is critical to our public mission in meeting global demand for US currency, ensuring the quality and integrity of currency in circulation, and maintaining cost-effective operations.’
The announcement comes after many years of reviews and research by the CPO which culminated in a two year tender process, following which – in November 2017 – it awarded two companies, Giesecke+Devrient (G+D) and Cash Processing Solutions (CPS) contracts to participate in the final phase – a competitive development in which both companies would design, develop and manufacture a high speed currency processing system with the associated software solutions to meet the Federal Reserve’s note processing requirements.
G+D announced at the time of the development contract award that its development would be based on its global M Series platform. Following its success in being chosen to deliver the NextGen machines, G+D noted that in the competitive bidding and development process it had engineered a prototype to meet the requirements and milestones that the Fed established and that it would now continue to develop, test, and roll out the NextGen equipment over the nest several years.
The contract marks another milestone in the decades-long strategic partnership between the Fed and G+D, who has been supplying high speed processing equipment for US currency since the late 1980s.
‘Our high-speed currency processing systems ensure the highest security and efficiency for central bank cash centres’, said Dr Wolfram Seidemann, CEO of G+D Currency Technology. ‘We are humbled by the trust the FRS has placed in the entire G+D group and we are looking forward to this next chapter in our relationship. The NextGen project will lead to a further leap in intelligent automation and digitisation of the cash cycle which will benefit the whole industry.’