FedCash® Services: United States Currency Program Update
May 30, 2023
The United States Currency Program’s (USCP) is modernizing bank note production equipment that will result in nonconsecutive sequencing of new straps of US currency. Currently, new straps contain one hundred bank notes with the serial number on the first banknote ending with “01”, and the serial number on the last banknote ending in “00”. “Star” notes replace sequential serial numbers on dollars that are removed because they do not meet quality standards. The USCP’s new equipment will not produce the star notes that replace imperfect notes in a strap of Federal Reserve notes. However, star notes will continue to be produced by traditional banknote production equipment until further notice. All Federal Reserve notes, including star notes, will remain legal tender worth face value regardless of when they were issued.
As a result of the new printing process, future serial number patterns in a strap may contain gaps and will no longer be in consecutive sequence. The first Federal Reserve note in a non-sequential strap is not expected to have a serial number ending in “01.” Similarly, the last Federal Reserve note is not expected to have a serial number ending in “00.” This new printing process will have a transition period lasting several years and will be phased in by denomination, starting in 2023. At this time, only the $1 denomination is currently in production. Non-sequential straps of the $1 will be available based on local inventories and distribution schedules. Until the new printing process transition has ended, sequential and non-sequential straps should be expected. Should you have any questions about this update, please contact uscurrency@frb.gov.