A new era in U.S. currency is on the horizon. Beginning in 2026, the Federal Reserve will initiate the most comprehensive rollout of redesigned banknotes in decades—starting with the $10 bill in 2026, followed by the $50 in 2028, $20 in 2030, $5 in 2032 and continuing through the $100 note in 2034. These new notes will incorporate cutting-edge security features to safeguard against counterfeiting, enhance public confidence, and ensure machine-readability across increasingly digital cash ecosystems.
While this modernization represents a positive step forward in currency security, it also introduces an urgent challenge: Are financial institutions (FIs) prepared to recognize and authenticate the new banknotes?
The short answer for many is—no. Far too many FIs are still operating on legacy systems not equipped to process or authenticate the new generation of currency. These outdated devices—whether in the form of ATMs, TCRs, or currency counters and sorters —pose a serious risk of rejecting genuine banknotes or, worse, failing to detect counterfeits.
This transition is not just a technology upgrade—it’s a critical security mandate.
Why Urgent Action Is Needed
The threat landscape is evolving. Counterfeiters are not only using advanced printing techniques but now leverage artificial intelligence to replicate security features with alarming precision. In fact, counterfeit currency in circulation in the U.S. is estimated at $70 – 200 million (Source: United States Department of Treasury] and the tactics behind its creation are growing more sophisticated every year.
The redesigned notes are expected to feature robust, machine-readable security enhancements that will challenge even the most advanced fraudsters. But to make full use of these features, FIs must proactively update their software, firmware, and—where necessary—replace incompatible equipment.
Steps Toward Readiness
Preparation starts with an internal audit by evaluating the cash-handling infrastructure to determine upgrade paths and compatibility. ATMs, currency counters, and teller devices should be assessed for their ability to process the new note series. In some cases, firmware and software updates will suffice; in others, full hardware replacements may be unavoidable.
Equally important is employee training. Tellers, branch staff, and cash-handlers need to be familiar with the new designs and features. Training programs should focus on visual authentication, device operation, and escalation procedures for suspected counterfeit detection.
The goal is simple: minimize transaction friction, protect customers, and ensure seamless integration of the new notes into daily operations to keep the cash cycle efficient and resilient.
Looking Ahead
Cash remains a trusted and vital component of the U.S. financial system—even in an increasingly digital world. The Federal Reserve’s investment in next-generation notes reflects a long-term commitment to cash security. For [FIs], responding with equal urgency is not optional—it’s essential.
Giesecke+Devrient has decades of experience helping financial institutions worldwide upgrade and secure their currency processing systems. We are ready to partner with your institution to assess readiness, deploy upgrade strategies, and train your teams for the future of secure cash. As a technology leader, our offering combines hardware, software and services into intelligent and scalable solutions for a resilient and efficient cash cycle.
Is your branch ready for 2026 and beyond? Prepare your institution today by downloading G+D’s free whitepaper here, “A Guide to Navigating Counterfeit Currency Trends in the U.S.” to explore expert insights and actionable steps for safeguarding your cash-handling infrastructure.
