Discussion regarding the operations of the U.S. Mint and the Bureau of Engraving and Printing (BEP) was the focus of a recent Monetary Policy and Trade Subcommittee hearing, which allowed for evaluation of both entities roles in producing currency now and in the future.
“It is the responsibility of Congress to provide oversight of the U.S. Bureau of Engraving and Printing and the U.S. Mint,” Subcommittee Chairman Andy Barr (R-KY) said. “With new and disruptive products entering the market, demand for coins and paper money may grow at a slower pace and possibly even decrease one day.”
Barr said Congress must ensure that the BEP and Mint are considering the potential disruption and others such as new technologies, which could increase the sophistication of counterfeiting abilities of criminals.
Hearing highlights included the assertion that while coins and banknotes are cornerstones of the nation’s economy, changes in the market and technology have provided alternatives to cash for many transactions, and the Treasury Department needs to keep production and anti-counterfeiting techniques up to date. It is also essential, the subcommittee determined, to be able to forecast future demand for coins and banknotes so the government and Federal Reserve are not caught off-guard by dramatic increases or decreases in demand.
“The pace of technological change, market uncertainty and the increasing sophistication of criminals are key external factors that will influence the future,” David J. Ryder, director of the United States Mint, said in his testimony. “In view of these external factors, my vision for the Mint is an organization that is more agile in responses to changing conditions, able to nimbly adapt to challenges while working in unison.”