1847) Bitcoin Backed Banknotes are being envisaged by "Noteworthy" which are aimed at generating user confidence in the Crypto-Currency: (2024)

1847) Bitcoin Backed Banknotes are being envisaged by "Noteworthy" which are aimed at generating user confidence in the Crypto-Currency:

The Background:

Paper money, backed by something physical or not, has been accepted and trusted, as a form of currency since it was first introduced in China, as early as the 7th century.

In more modern financial transactions, cheques, credit and debit cards, and electronic transfers have over the years gained currency.

What makes electronic transfers including Bitcoin and other nebulous unbacked forms of fiat cyber cash different is that they don’t exist physically. Or, at least, they have not existed physically until now.

Bitcoin backed "Bank" notes envisaged by a new Company called - "Noteworthy":

Physical rather than digital Bitcoin-backed ‘bank’ notes are being planned/envisaged through a new company called "Noteworthy", a new project to create Bitcoin-backed banknotes through a co-venture, headed by former director of the U.S. Department of the Treasury Bureau of Engraving and Printing (BEP) Larry Felix with Bitcoin Foundation Founding Chairman Peter Vessenes.

"Noteworthy," is a new US-based startup, which is working on creating the very first bitcoin-backed banknotes to give Bitcoin offline transaction features, which would make it more efficient and appealing for non-tech-savvy users.

Noteworthy has envisaged bringing out a physical cryptocurrency "bank" note which brings about combining the utility and security from the paper money, digital asset, and blockchain industries.

Equipped with a secure cryptographic microprocessor and utilizing all of the Banknote industry’s highest security features, Noteworthy Banknotes will look and feel like top-of-the-line currency while providing the highest grade of digital security directly embedded in each note.

Users will be able to interact with the notes through Noteworthy’s mobile app, further bridging the gap between the physical and digital.

When Noteworthy's "Bank" Notes are released in the market, Bitcoin (BTC) might leap from being a digital asset to a physical one.

The startup’s primary aim is to make Bitcoin a tangible entity in the real world. However, the team behind the idea is yet to explain how they intend to make this possible. Nonetheless, the combined credentials of the team lend a lot of weight to the initiative.

Perhaps, the exciting possibility of creation bills representing other cryptocurrencies is taking shape in the near future, where both physical and crypto-currencies boost user confidence in each other.

This transformative project aims to bring about more confidence in users:

A physical bank note will provide a level of trust, familiarity, and accessibility that digital assets on their own have yet to achieve. The project aims to create a beautifully designed, easy-to-use, counterfeit-resistant bank note of the highest quality.

Bank notes are issued by banks and backed by trust in the government and the economy of the country that issues them. Cyber money is backed by the trust someone has in a form of digital currency that only exists online.

The new venture is the premier provider of physical banknotes that represent various denominations of Bitcoin and other digital currencies.

While digital assets are becoming more mainstream, they still lack the level of trust, familiarity, and accessibility that a physical banknote provides.

Interestingly, the wheel seems to be turning a full circle - Initially physical bank notes and coins found a substitute with electronically generated cryptocurrency backing payments, and now back to physical notes, which will work in tandem to build confidence in cryptocurrency..

The Project Spearhead:

Noteworthy has enlisted Manuela Pfrunder, the designer of the ninth series Swiss Franc and 2016 winner of the IBNS Banknote of the Year, as Chief Design Officer and Edmund Moy, 38th Director of the US Mint as an advisor.

With design at the forefront of the project, Noteworthy has additionally partnered with renowned banknote image engraver, Thomas Hipschen, to assist with the portrait components of the note. Hispschen, who has engraved over 130 U.S. postage and revenue stamps as well as the portraits of Benjamin Franklin, Ulysses S. Grant, Andrew S. Jackson, and Abraham Lincoln on the current $100, $50, $20, and $5 US banknotes, has come out of retirement to join Noteworthy.

Noteworthy has not yet released any design proposals.

Noteworthy is not the only entrants to the new field:

Bitcoin Banknote Project, along with Independent Currencies, security documents design studio, released four limited print run designs in 2020.

The Bitcoin Banknote Project has produced a number of sample bank notes in cryptocurrency denominations, including items shown for Canada and Germany..

A specimen Bitcoin Note developed by the Bitcoin Banknote project

What does it mean for the Bitcoin community?:

How will the Bitcoin community digest this idea? It is hard to tell, especially since many Crypto Bitcoin enthusiasts dream of a cashless society.

However, considering Bitcoin is just a new, different cash system, going physical may not be a far-fetched concept.

The idea of a physical Bitcoin has been circulating among many crypto enthusiasts for quite some time.

One of the most critical user cases applies to locations with limited internet access. Precisely in more impoverished areas where the unbanked population abounds, internet access tends to be very poor, as such, cryptocurrencies have little/no room to grow.

Some physical Bitcoin initiatives are geared more towards collectibles rather than real money creation.

For example, companies like Titan Bitcoin issue commemorative coins with the keys to a wallet with a certain amount of bitcoin inside, also some funds have experimented with physically-backed crypto ETPs and similar offers to provide some price exposure.

Cryptocurrency notes may leave proponents of a cashless society somewhat disappointed, but it may also leave bank note collectors wondering if this might become the next numismatic collectible.

Another interesting question is what will people call this cash version of Bitcoin because, well, "Bitcoin Cash" is not available any more/already taken.

Perhaps, over time, Noteworthy’s notes may be called "cryptocurrency notes or scrips".

For "Noteworthy", the possibility of working on bills representing other cryptocurrencies is a distinct possiblity.

A representation of an Ethereum Cryptocurrency