EN ECB-P UBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 22 June 2011 
on the circulation of banknotes and coins  
(CON/2011/51) 
 
Introduction and legal basis  
On 10 May 2011 the European Central Bank (ECB) received a request from Česká národní banka for an 
opinion on a draft decree on the implementation of cer tain provisions of the Law on the circulation of 
banknotes and coins (hereinafter the ‘draft decree’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first, second and third indents of Article 2(1) of Council 
Decision 98/415/EC of 29 June 1998 on the consulta tion of the European Central Bank by national 
authorities regarding draft legislative provisions1, as the draft decree relates to currency matters, means of 
payment and CNB. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the 
European Central Bank, the Governing Council has adopted this opinion. 
 1.  Purpose of the draft decree 
The draft decree comprehensively implements releva nt provisions of the recently adopted Law on the 
circulation of banknotes and coins
2 (hereinafter the ‘Law’), on which the ECB was consulted in 20093. 
The draft decree lays down, in particular: (i) standa rds for processing national banknotes and coins; (ii) a 
description of the degree of wear and damage of na tional banknotes and coins unfit for further circulation; 
(iii) the procedure for seizing suspicious banknotes and coins; (iv) reproduction rules for national and 
foreign banknotes and coins; (v) reporting obligation vi s-à-vis the national central bank; and (vi) types 
and content of professional training courses on iden tifying national and fore ign banknotes and coins 
suspected of being counterfeit. 
 2. General observations  The Czech Republic is a Member State with a derogati on within the meaning of Article 139 of the Treaty 
and, therefore, the ECB requirements regarding (i) the authenticity and fitness checking and recirculation 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  Law No 136/2011 Coll. on the circulation of ban knotes and coins and amending Law No 6/1993 Coll. on Česká národní 
banka. Under Article 35 of Law No 136/2011 Coll., CNB is authoris ed to issue a decree to implement specific provisions 
of the Law.     
3  See Opinion CON/2009/52. All ECB opinions are publis hed on the ECB’s websit e at www.ecb.europa.eu. 
ECB-P UBLIC  
2 of euro banknotes4 and (ii) the reproduction rules for euro banknotes5 currently do not apply to Česká 
národní banka. These requirements will apply to Česká národní banka once the Czech Republic adopts 
the euro and Česká národní banka becomes a fully integrated me mber of the Eurosystem. In this context, 
the ECB generally welcomes the efforts to make the Cz ech legal framework in this area compatible with 
that applicable in the euro area as this will facilit ate the future participation of the Czech Republic in 
economic and monetary union. However, Opinion CON/ 2009/52 remains largely valid also in the context 
of the present draft decree6 and should be considered alongside the specific observations set out below. 
 3. Specific observations 3.1 Standards for processing the national currency  
 The ECB notes that the standards for processing the national banknotes draw largely on Decision 
ECB/2010/14. As regards the procedures for the testing of currency processing equipment, the draft decree provides that each type of equipment will onl y be tested once and that the validity of a test 
will not be time limited. However, Česká národní banka may, where appropriate, retest all 
equipment that has already passed the test
7. This approach may bear the risk that currency 
processing equipment is not regularly and mandatorily  re-tested to check that it is still capable of 
detecting the most recent counterfeits in circulation. The ECB notes that under Decision ECB/2010/14 the successful test results are valid for one year only, provided that the relevant equipment is capable of detecting a ll counterfeits known during this period
8.  
3.2 Reproduction of banknotes  
 According to the explanatory memorandum to the draft decree, the conditions under which 
banknote reproductions may be made are iden tical (with one exception allowing for the 
reproduction of visually distorted banknotes) to the conditions laid down in Decision ECB/2003/4. 
The ECB notes, however, that the draft decree allows  tangible reproductions that have the original 
banknote size and the word ‘Specimen’ or other similar word printed diagonally across them9. 
Decision ECB/2003/4 does not allow such reproductions of euro banknotes, as the risk that they may be mistaken by the general public for ge nuine euro banknotes is considered too high. 
 
                                                 
4  See Decision ECB/2010/14 of 16 September 2010 on the authen ticity and fitness checking and recirculation of euro 
banknotes (OJ L 267, 9.10.2010, p. 1). 
5  See Decision ECB/2003/4 of 20 March 2003 on the denomi nations, specifications, re production, exchange and 
withdrawal of euro banknotes (OJ L 78, 25.3.2003, p. 16). 
6  See, in particular, paragraphs 2. 2, 2.3 and 3.1 of Opinion CON/2009/52. 
7  See Article 6(5) of the draft decree. 
8  See Article 9(3) of Decision ECB/2010/14. 
9  See Article 16(1)(d) of the draft decree. 
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3 This opinion will be published on the ECB’s website.  
  Done at Frankfurt am Main, 22 June 2011. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET