Having a factory print money is not as good business
Believe it or not, have a license to print money has been losing attractiveness as a business proposal.
Know that De La Rue, one of the largest manufacturing companies of paper money in the world.
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The company announced Wednesday it was cutting its global production as demand falls by paper money.
De La Rue says it will reduce its annual production from the current level of 8,000 million tickets, only 6,000 million, according to the BBC reporter Brian Milligan.
Less jobs
The company has three production centers. One of them is in the British city of Gateshead.
But an increasing portion of their production has been moved to Kenya and Sri Lanka.
And about 300 people will lose their jobs in Malta.
"Today we announce plans to achieve a more agile De La Rue, in line with the future needs of our global customers," said Martin Sutherland, CEO of the company.
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The company currently prints over 150 national currencies and British passports.
De la Rue, which has manufactured airline since 1860, has repeatedly warned about falling profits to the extent that has difficulties to competitors.
Just last week reported a 38% drop in earnings before taxes, our reporter says.
Cashless world
When explaining the problems of the firm De La Rue is important to remember that fewer and fewer people want to use paper money.
Throughout the world, many governments are making efforts to leave behind when the cash.
In Denmark, for example, cash payments have fallen by 90% since 1990. Only a quarter of the payments are still being made with physical money, according to BBC reporter Jesús Moreno.
Last May, the Danish government expressed its desire to eliminate in 2016 the use of cash in shops, gas stations and restaurants.
And in Colombia, the small town of Concepcion, Antioquia, has been making a highly publicized effort to become the first town in the country to abolish the cash.
"For almost a year ago, many of its more than 4,500 inhabitants are part of a pilot program Davivienda Bank, the Bank of Opportunities and the Banking Association to promote the use of electronic means of payment instead of cash" says BBC correspondent in Colombia, Natalio Cosoy.
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Plastic better than paper
It is estimated that even with the introduction of these electronic devices, there will always be a demand for a certain amount of cash, physical money.
But the paper, which was produced for centuries, seems to go out as a raw material of money.
And as falling demand for paper money, the company De La Rue has focused more on making its plastic equivalent.
Now printed on polymer banknotes of 5 and 10 pounds to the Bank of England, which will come into circulation in 2016.
The website of the British Central Bank ensures that the benefits of using plastic is that tickets are more hygienic, more durable and difficult to counterfeit.
Banknote printing are not about to disappear altogether.
But there may be past the time they were literally a license to create money.
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