A commemorative bank note, celebrating the 500 years of the discovery of Brazil

General information

In April 2000, the Central Bank of Brazil launched a commemorative bank note to commemorate the 500 years of the discovery of Brazil. Apart from the commemorative aspect, the note will be a test of the polymer plastic material as an alternative to the production of paper bank notes.

The application of the plastic in bank notes has been originally developed in Australia, that uses polymer in all of its currency notes. The use of plastic as an alternative material to paper has expanded. Currently, 13 countries already issued plastic bank notes.

According to the Reserve Bank of Australia, polymer notes are, in average, 4 times more durable as their paper counterparts. Polymer also makes it possible to use a new range of security elements, in addition to those found in paper notes. Among these new security elements, one of the most important is the transparent area that can be located in any part of the note, with various designs, and it allows for an incorporation of filters, lenses and other devices that increase security. The transparent window is an important security device that cannot be reproduced by printing, photocopying or scanning. Australia and New Zealand, that use only polymer bank notes, say that the volume of counterfeited notes is very limited. 

A production of 250 million plastic bank notes is planned, and they will be put into the circulation in 2000 and 2001. This volume represents approximately one half of the R$10 bank notes in the circulation. This will make it possible to evaluate the new material, particularly in these areas: (a) the adaptation of the public to the plastic material; (b) the durability of polymer under Brazilian conditions; (c) the robustness of the security elements; (d) the performance of the bank notes in the bank note processing machines of the central and the commercial banking network.

Important: the paper R$10 bank notes will continue to circulate normally.

Security elements of the commemorative bank note

The bank note, commemorating the 500 years of the discovery of Brazil, incorporates a set of security elements that are similar to those found in the current paper Real bank notes, plus some additional security elements that are characteristic to polymer notes and that provide a higher level of protection against counterfeiting, i.e., a greater difficulty of reproducing the bank note.

Security elements:

(1) Latent image—when placing the note to the height of the eyes and under abundant light, letters "B" and "C" in Portuguese decorative tiles will be visible, located in the left lower part of the front of the bank note.

(2) Printed security thread—a magnetic reading, incorporated in the security thread, enables electronic equipment to process the bank notes.

(3) Intaglio (high-relief) printing—raised printing is used in certain areas of the note, e.g., the portrait of Cabral, the map of Brazil, the inscriptions "Banco Central do Brasil" and "Dez Reais", "Brasil 1500-2000", "10", and images of the people of Brazil on reverse. 

(4) Watermark (shadow image)—features one of Cabral's ships, visible when the note is held against the light. Variations of tones, from clear to dark, define the image, producing a similar three-dimensional effect as seen on paper notes. 

(5) Background printing—produced with advanced computer methods, the bank note has images and multidirectional lines that prevent reproduction (e.g., by photocopying). 

(6) Microprinting—miniature letters and digits, visible with an optical device (e.g., lens), form the expression "Brazil 500 Years", the acronyms of the Brazilian states, the letters "B" and "C" and the number "10".

(7) Perfect (see-through) registration—images from reverse and obverse match perfectly. The wind rose's tips match when the note is observed against the light. 

(8) Transparent window—part of the drawing of the wind rose is completely transparent.

(9) Verifying filter (metameric)—is an element of authentication. When the red area in the center of the transparent window is placed (by folding the note) so that it overlaps the ship, a number "10" will appear. 

(10) Blind embossing—a number "10" is embossed in the clear window.

(11) Ultraviolet protection—a number "10" is visible on the map of Brazil (right to Cabral) when the note is exposed to UV light. 

Characteristics of the commemorative bank note

From bibliographical research and meetings with the National Commission for the Commemorations of the 5th Centennary of the Discovery of Brazil (CNVC), with technicians of the Casa da Moeda do Brasil (CdM), and with specialists in the areas of plastic arts, design and history, the project of the commemorative bank note has been defined. The project, implemented for the CdM, portraits Brazil at two moments of its history: the reverse of the bank note depicts the time of the discovery, using representative elements of this historical period, such as the portrait of the finder, the map of the time, and vessels of the expedition of Cabral; the reverse of the bank note depicts the contemporary Brazil, represented by a map of present-day Brazil, and by its people.

Furthermore, the new bank note represents a new approach, an employment of a special type of plastic in the manufacture of the bank note. It is with this note that the Central Bank will, apart from commemorating the 500 years of the discovery of Brazil, test the functionality and acceptance of the new material for the Brazilian currency, with the intention to produce safer and more durable bank notes.

A bank note was produced by Tereza Regina Barja Fidalgo, and the graphic work has been done by Marise Ferreira da Silva, in collaboration with the Currency Department of the Central Bank of Brazil. The manual engravings were made by Mário Dittz Chaves and Cláudia Lopes Tolentino, and have been based on photographs of Bruno Alves/Reflexo, Damascene Cavalcanti Luiz, Joăo Américo Peret and Nízio Fernandes.

10 Reals bank note / Dimensions: 140 x 65 mm / Material: polymer plastic / Predominant colours: blue and orange

Obverse:

Portrait of Pedro Álvares Cabral, a Portuguese navigator who discovered Brazil on 22nd April 1500. The map of Brazil is one of the first representations of the new land. A section of the letter of Pero Vaz de Caminha is the first document to describe characteristics of the land and its people. A wind rose is an instrument of navigation of the Portuguese cartography of the 16th century. Five vessels of the Cabral's expedition are represented. Various Portuguese decorative elements are represent in background at the right of the note, along with the da Cruz of the Order of Christ, a simbol, carried by the Portuguese vessels of the time. 

Reverse:

A map of Brazil and people's faces, portraying the typical Brazilian people (Indian, white, black, and mestizo), representing a characteristic of contemporary Brazil: ethnic and cultural plurality. 

Alterations of the characteristics

An official notice no. 008016, issued on 22.11.00, introduced the following changes to the design of the bank note, starting with the series "A 0587": (1) Cabral's name has been extended to Peter Álvares Cabral; (2) the wording "Deus seja louvado" ("God is praised") is printed in darker orange; (3) blind embossing more emphasised; (4) improvement of the definition of the latent image and the microprinting on the reverse.

The previously issued bank notes remain in circulation without restrictions. 

Frequently asked questions

(1) Why issue a polymer bank note?

The reduction of the cost of the currency issue as well as providing safe and easily authenticable bank notes are permanent tasks of the Central Bank. With the advance in techonologies of graphical reproduction, the central banks have intensified their search for an economical/safe/functional bank note. In this context, CdM has tested a special sort of polymer plastic, developed for the use in bank notes. This material promises greater durability of bank notes and allows for the inclusion of complex security features that allow the public to easily authenticate the bank note. Therefore, it has been decided to use polymer material in a commemorative bank note for the 500 years of the discovery of Brazil to gain experience with the new material. 

(2) What reasons justify the choice of the denomination (R$10) and the quantity (125 million bank notes in 2000, and another 125 million in 2001)?

Commemorative issues always come in limited quantities, which, therefore, does not provide a continuous issue. Additionally, the population keeps the bank notes as souvenirs. This phenomenon has been observed in other countries as well. Is is imperative for the testing, that: (a) the issue is large enough; (b) it reaches a significant portion of the population, in order to form a judgement about the new material; (c) the bank notes are used in bank notes processing machines; (d) the robustness of the security elements is tested. The Central Bank: (a) decided to use the R$10 denomination, whose high value tend to inhibit people from hoarding the notes—the R$10 denomination represent the second largest number of notes in circulation (R$1 being the most numerous), but is the denomination that is most frequently used in the bank notes processing machines and that is most frequently counterfeited—; (b) agreed on printing 250 million notes, which is the amount that represents circa 50% of all the R$10 bank notes currently in circulation, which assures that the new bank notes will be frequently handled by the population—the total amount has been divided into two years, with 125 million notes released in 2000 and another 125 million in 2001, with the purpose of harmonizing the flow of new bank notes with the manufacturer's production capacity and with the natural rhythm of the substitution of the current R$10 paper bank notes.

(3) Which are the advantages of the adoption of plastic bank notes?

The performance of the polymer bank notes under Brazilian conditions is not known. This is the reason why a test in the form of a commemorative bank note is required. The experience of other countries (mainly Australia and New Zealand), however, gives us positive expectations with regards to the following three aspects: (a) cost vs benefit relation: eventhough the production costs of a plastic bank note are approximately twice as that of a paper bank note of the same denomination, the increased durability makes plastic bank notes more economical—the experience of the countries that use plastic bank notes shows that they are up to four times more durable than their paper counterparts, and this expectation has been confirmed by the laboratory tests, led by CdM—; (b) security features: the advanced techniques of graphical reproduction, for example, sophisticated copying equipment, are available today to the general public, and have erroded the defenses of the currency against counterfeiting; however, the technological development, in the same way that it brings threats, can contain solutions; in this direction, the use of plastic in bank notes opens new perspectives, making possible the inclusion of a new set of security elements that offer easy identification to the public and deter counterfeiting; with the exception of the devices that are embedded in the paper (e.g., watermark, coloured fibres, confettes, etc.), all security features that are possible in paper can also be applied to the plastic substrate, which also offers new elements, such as the transparent window, the metameric filter, lens (inserted in the window), greater definition of the graphical elements, made possible because plastic, unlike paper, does not absorb ink into the substrate, and special inks; (c) machine processing of bank notes (in vending machines, counting and sorting machines, etc.): the plastic bank notes are cleaner, that is, they hold less dirt than paper, which benefits the public, as well as the processing equipment's sensors; additionally, since the useful life of plastic bank notes is usually defined as the duration of the graphical elements on the note, the substrate is much more resistant, which enables all the notes to be submitted to automated processing for the whole duration of a bank note's circulation—this is not possible with paper notes, since the substrate, in its final phase of circulation, tends to decompose, thus compromising the performance of the bank note processing equipment. 

(4) What are the production costs of commemorative plastic bank notes?

When referring to the cost of currency, one has to compare two parameters: production costs and durability. There is still no definite answer as to the durability of the plastic bank notes in Brazil. However, as far as one can rely on the studies of the new plastic material, plastic is cheaper—a 100% increase in the production costs is counterbalanced by a 300% increase in durability (the point of reference for both comparisons are the paper notes). There is an added aspect: an adequate comparison would consider a paper bank note with the security level equivalent to the one found in the R$10 commemorative plastic note, which would raise the comparative production costs of paper bank notes. 

(5) Can plastic bank notes be successfully used in the banks' vending machines (ATMs)?

The use of ATMs is common in Australia and New Zealand, where all of the bank notes in circulation are plastic. The Central Bank of Brazil carried through some tests in currency processing equipment, using used and new Australian plastic bank notes, and the evidence shows that the equipment functioned adequately. 

(6) Is there a commitment to substitute the current Real bank notes?

The decision on the degree of adoption of plastic material in other Brazilian currency denominations depends, among other factors, on the results of the experience with the commemorative R$10 plastic bank note, whose evaluation period is possible to extend up to the year 2004. After this stage, the Central bank will have conclusive information on the substrate, and will be able to answer questions about the cost vs durability, robustness of the security elements, and performance of the bank notes in the bank note processing machines. 

Collectors' issue

The Central Bank of Brazil released (on 05.06.00) commemorative R$10 bank notes in special numbered envelopes, with the serial numbers of the bank notes ranging from "A0001000001D" to "A0001100000D". The envelope contains a R$10 commemorative bank note, with Portuguese and English descriptions. The price is R$12, and the items are available in Central Bank's branches.