banknote as a relic of the past, but rather embrace it as a cornerstone of our present and future prosperity. ensuring that our banknotes and coins are relevant, remains the pre - occupation of the bank of namibia. the bank need to ensure our currency is counterfeit resilient to maintain the public's trust and the integrity of our currency. as you might be aware, the first namibian banknotes and coins series were issued in 1993, marking 30 years in circulation. in may 2012, the bank issued the second family of banknotes with state - ofthe - art security features, which notes are currently in circulation. however, the coins have not been upgraded since its initial issuance in 1993. enhancing security features on banknotes and coins is an on - going process that is undertaken to maintain the highest level of quality and security. the international best practice dictates that central banks should review their currency at intervals of between six and eight years with the aim of ensuring that demand for banknotes are well aligned with economic activities, address weaknesses and challenges associated with the management of notes and coins in circulation. given the aforesaid, the bank in 2022 undertook a comprehensive review of the current circulation currency, which study revealed the need for the bank to undertake a minor upgrade on the current banknote series and a complete upgrade of the coin series. this project will entail the revamp of both our banknotes and coins, to give them a vibrant, modern look and feel, whilst incorporating the latest security features to mitigate the advances in technology that may give rise to counterfeiting. the new series will, therefore, not only further strengthen the resilience, confidence and integrity in our currency but will improve the durability of our banknotes and coins, in so doing, allow the bank to procure currency in the most cost - effective manner. we intend to launch the upgraded namibian currency series in 2025. ladies and gentlemen, as a proud namibian nation, we find ourselves on the brink of a transformative era where new doors of opportunity are swinging widely open before us. the discoveries in oil and gas, coupled with advancements in green hydrogen within the renewable energy sector, beckon us towards unprecedented avenues of economic growth and progress. and once more, it is luderitz, standing steadfast at the heart of these endeavours, holding within its embrace the very key to our nation's future economic prosperity and boundless opportunity. 4

the settlement grew the necessity for a more convenient and universally accepted form of payment became evident. this led to the introduction of physical banknotes and coins and the issuance of local banknotes, which later fostered economic growth and modernized the financial system at the time. ladies and gentlemen, from those heady days, money is still an integral part of our lives. indeed, " money makes the world go around, " liza minnelli famously sang in the movie cabaret. money is central to human relationships symbolising trust, sovereignty, and value exchange. for centuries, the world over, history has taught us that the loss of faith in the value of currency can lead to economic and political instability and even conflict. money, therefore, has epitomized sovereignty, embodying the authority and stability of nations. ladies and gentlemen, the bank of namibia shoulders the responsibility of issuing money with the primary objective of maintaining price stability. over the past 34 years, we have diligently discharged this mandate. yet, the global banking arena is currently experiencing rapid and significant shifts driven by digital technology. this evolution reshapes how money is managed, with digital alternatives emerging to challenge traditional banking practices. the concept and relevance of money, as we have known it for centuries, finds itself at an interesting inflection point. in the past few years, financial technology - fintech for short - has caught the world's imagination by offering innovative alternatives to traditional means of payment. in the midst of this transformation, digital currencies and the rise of'big tech'encompassing blockchain, artificial intelligence and the internet of things stand as prominent examples of a fundamental shift in the financial landscape. the " money flower, " as described by the bank for international settlements in their quarterly review from september 2017, serves as a conceptual framework illustrating the various dimensions or functions of money in an economy. like a flower with different petals, money serves different purposes or roles. at the heart of the flower lies central bank money, issued, and controlled by a country's central bank like the bank of namibia, encompassing both physical cash and digital money used for significant transactions between banks and governments. moving outward, we encounter other forms of money. mobile money enables us to manage and transfer funds via mobile phones through services like e - wallets and paypal. further out, we find commercial bank money, created by commercial banks through loans and deposits, enabling us to do our everyday transactions through swiping for