The Bank of Italy issues euro banknotes in accordance with the principles and rules established within the Eurosystem and controls all the currency in circulation in Italy.
As part of the Eurosystem, the Bank produces the quantity of euro banknotes assigned to it, puts them into circulation, withdraws worn notes, takes part in the search for and experimentation of new security features and contributes to the definition of common standards for the quality of the notes in circulation and the fight against counterfeiting.
The Bank of Italy also exercises powers of control over cash handlers. In cases of rules violations it may levy pecuniary administrative sanctions and adopt restrictive measures.
Euro coins are minted in Italy by the State Printing Works and Mint on behalf of the Ministry for the Economy and Finance, which, in its capacity as issuing body, ensures that they are distributed nationally through the branches of the Bank of Italy.
The issuance of euro banknotes
On 1 January 2002 the Bank of Italy and the other eleven EU central banks that had adopted the single currency began issuing banknotes and coins denominated in euros in accordance with the principles and regulations that govern the Eurosystem issue function.
Euro banknotes and coins are legal tender in the euro area, which as of 1 January 2011 comprised 19 of the 28 EU member states: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
Both the European Central Bank (ECB) and the euro-area National Central Banks (NCBs) are legally authorized to issue euro notes. In practice, however, only the NCBs actually issue and withdraw euro notes. The ECB does not have a cash handling division and is not involved in any cash transactions.
The principle of non-repatriation of euro notes
The individual NCBs are required to handle all the euro notes present in their respective national systems, regardless of the country that issued them. Under the principle of decentralized performance of Eurosystem operations, the NCBs are responsible for the issuance, destruction and replacement of worn notes.
The issuance of euro coins
The issuance of euro coins is the responsibility of the member states participating in the Eurosystem, coordinated by the European Commission.
Euro coins are minted in Italy by the State Printing Works and Mint on behalf of the Ministry for the Economy and Finance.
Damaged coins can be presented to the branches of the Bank of Italy, which then forward them to the State Printing Works and Mint.
The quality of the notes in circulation
The ECB and the Eurosystem NCBs pursue the objective of ensuring the integrity and good state of the notes in circulation, so as to maintain the public’s confidence in euro banknotes. Banks and other professional cash handlers play an important role in maintaining the quality of the note issue.
To guarantee the integrity of the notes in circulation, the European Central Bank (ECB) has adopted Decision ECB/2010/14 on the authenticity and fitness checking and recirculation of euro banknotes.
We would like to invite you to participate in a short online survey on the quality of the euro banknotes that you handle on a day-to-day basis. The online survey takes no more than few minutes to complete. Please, visit https://epsilon.escb.eu/limesurvey/827918.
Common NCB tests for recycling purposes
In implementation of the European Central Bank Decision ECB/2010/14, banknotes can only be recirculated if they have been checked by machines that are compliant to the requirements laid down in the Decision.
To this end, NCBs offer the manufacturers of these machines the possibility of testing their capability for checking banknotes' authenticity and fitness, using a common procedure and a common set of banknotes consisting of a sample of counterfeit notes and of genuine notes, some fit and some unfit for recirculation. The test is free of charge and can be requested to any Eurosystem NCB; the test is valid throughout the entire euro area.
The cash-handling machines referred to in Decision ECB/2010/14 are classified into two categories:
- Customer-operated machines, comprising:
- cash-recycling machines, which take in banknotes, check their authenticity and fitness for recirculation, and redistribute them to customers
- cash-in machines, which allow only the deposit of cash, accepting notes and checking their authenticity.
Both these types of cash-handling machine must be able to guarantee traceability, i.e. to link the suspect counterfeits to the current account to which they were to be credited.
- Staff-operated machines, comprising:
- banknote processing machines, which check notes for both authenticity and fitness;
- banknote authentication machines, which check only for authenticity.
Both categories of machine must be capable of classifying individual notes as genuine or suspect counterfeits without staff intervention, sorting them automatically, and separating genuine notes into those fit and unfit for recirculation.
The ECB website posts the list of machines that have been successfully tested. The tests must be repeated every year.
Manufacturers interested in testing their cash-handling machines should contact one of the NCBs.
NCBs also offer testing of machines that only check the authenticity of banknotes not fit for recirculation. The list of such machines that have been successfully tested is published on the ECB website.
Manufacturers interested in having their cash-handling machines tested at the Bank of Italy should contact the test group at the General Cashier's Department.