There are a number of speculations involved on how to make paper money. It is the central bank of a country that is authorized to issue, design and produce paper money inside a country.
In earlier days, it was the precious metals that were used as money or currency. But over the period of time, the concept of paper money or bank notes has become universally accepted. In every country there lies a central bank or reserve that issues both banknotes and coins. The central banks are authorized to issue and distribute currency in the market.
There are a number of steps involved in the process of making of paper money. Now, the paper money is printed in various ways with a number of different types of machines. The government employed graphic artists are the ones who design and make the templates that are either accepted or rejected by the government mints. The engraver makes the design on metal by cutting in dots, curved lines or dashes. The process of designing is not made computerized as the combination of fine and coarse engraved designs are not possible to replicate in a computer-designed image.
The completed engraved template is then transferred to a soft transfer roll and when the roll is hardened, it is used to duplicate the original engravings again and again. The printing of paper currency involves the intaglio printing process, which is capable of printing over 8000 sheets every hour. The printing plate is made by taking the master die under pressure and when heated, the impression of the engraved template is taken. Generally, multiple plastic images of the different components made and are then fitted into predefined plate configuration that consists of thirty-two notes. A series of plates are produced from the plastic alto and the engraver very carefully checks the plates. The final chromium coated basso of the plate is then made and they are then used in the printing press for printing.
While printing, the surface of the note is slightly raised while the backside of the note is slightly indented. After the printing is complete, each and every stack is examined thoroughly for any kinds of defects. If the note sheet is absolutely fine, then it is sent for further processing and numbering. A letterpress then overprints the required seal, corresponding number and other information on the note sheet. The cotton paper is used in the making of paper money and the paper is generally mixed with fibers, linen or abaca in order to make the paper money more durable.