The reason why is somewhat ironic – the world’s largest banknote provider is running out of money.

The UK’s largest money printing company, De La Rue, which provides Britain with its national banknotes, passports, and tax stamps, has recently issued a statement where it expressed “significant doubt” over its future, citing “material uncertainty”.

However, the company’s interim 2019-2020 financial results have looked rather gloomy, with De La Rue indicating that it received £40 million less in revenue in comparison to the preceding half-year’s results. The company has also lost more than 20 percent of its value since 25 November.

The Bank of England sub-contracts this work to Debden Security Printing Ltd, owned by De La Rue plc

According to NBC News, the main reason for company’s financial difficulties could be that it was not awarded the contract to print the UK’s new blue post-Brexit passports, which went to Germany’s Gemalto instead.

The company could partly also be struggling from the rise in cashless payments and online transfers, but according to the investment research company Edison Group, the amount of banknotes in circulation and demand for them – especially long-lasting polymer banknotes –will continue to grow in the near future.

With all this in mind, De La Rue’s future, as well what will happen when it comes to the numerous central banks worldwide that depend on the company for printing banknotes, will be decided next year.

Sourse: sputniknews.com

Cash Apocalypse Looming? World’s Biggest Money Printer May Stop Working Soon

0.00 (0%) 0 votes

LEAVE A REPLY

Please enter your comment!
Please enter your name here