When people new to the Numismatic world start looking at what items to collect, they stumble upon the phrases “collectible banknotes” “novelty banknotes” and “fantasy banknote”. I’m sure many newbies have seen these words in listings and have thought to themselves “what does this mean? Well in this blog we will explain what the difference is between Collectible vs Novelty / Fantasy Banknotes, that way collectors can make the appropriate choice when deciding what to collect.
Collectible Banknotes
Demonetized Collectible Banknotes
A collectible banknote is a banknote or coin that was printed or minted by an official central bank and is legal tender or was previously legal tender. For example, in Zimbabwe in 2008 they printed one of the largest banknotes ever, it was the Zimbabwe 100 Trillion Dollars, 2008, AA. The obverse side shows the Chiremba balancing rocks in Epworth, stylized grains, and cow in underprint, and the Zimbabwe bird in OVI. The reverse side features Victoria Falls and a Cape buffalo.
This banknote was once legal tender in the country and stores, banks were obligated to accept it as a legal form of payment. It had an official currency symbol and the currency traded on international markets. However, since this banknote was printed during record levels or hyperinflation it was quickly removed from circulation and replaced by the USD and eventually a different Zimbabwean banknote family. When it was removed from circulation vendors and commercial banks stopped receiving this banknote. This banknote is no longer legal tender and became a Collectible banknote.
Commemorative Collectible Banknotes
Other examples of collectible banknotes include commemorative banknotes. Central Banks print commemorative banknote to honor special events, or milestones in the country’s history. The banknotes usually feature special designs that are much more different than standard circulation banknotes or sometimes the design is majority the same but, with some text or logo that distinguishes it from a standard circulation banknote. It needs to be mentioned that sometimes the banknotes are legal tender which means they can be used to purchase goods and services or sometimes they have no face value (not legal tender) and cannot be used to buy any goods or services. This decision is ultimately up to the Central Bank. Either way since they were printed by a Central Bank both kinds of banknotes would still fall under the collectible category.
An example of a commemorative banknote is the Thailand 100 Baht, 2024. This is legal tender. It was issued by the Bank of Thailand for the 6th cycle (72nd) birthday of King Maha Vajiralongkorn (Rama X). Both sides of the note are vertically oriented. Its obverse side features King Rama X in full Regalia with the Knight Grand Cordon (Special Class) of the Most Illustrious Order of Chula Chom Klao breast chain, and the Royal Garuda emblem. Its reverse side shows the Royal Garuda emblem, King Rama X in full Regalia with the Ancient and Auspicious order of the nine gems, the Knight Grand Cordon (Special Class) of the Most Illustrious Order of Chula Chom Klao breast chain and a sword. Though there is no security thread, there is still a shadow image of the Royal monogram.
Collectible Banknotes For Educational Purposes
Another popular reason why people choose collectible banknotes, is for educational purposes. They can have figures or events related to a countries history. Some of these banknotes or coins can still be legal tender. For example the US $1 Dollar banknote that features George Washington can be collected by someone who is looking for banknotes or coins to honor the founding fathers of the US. These types of banknotes and coins can even be used by schools as teaching aids. Learning is taken to another level when you can hold in your hands a numismatic piece dedicated to George Washington, Abraham Lincoln, Benjamin Franklin, and Andrew Jackson to name a few. A collectible banknote is usually sold by individual pieces, can have errors in the design, serial numbers can be consecutive or special and it can have other specific details that were agreed upon by the seller and buyer.
Another collectible banknote that can be used for educational purpose is the Venezuela 500 Bolivar Digital (Digitales), 2023. It’s legal tender. This banknote can be used to teach about Venezuelan naval history. Its obverse side features radiant sun, BCV on Venezuelan map as registration device, and three portraits of Simon Bolivar. Its reverse side shows Venezuelan coat of arms, Puente Rafael Urdaneta (General Rafael Urdaneta cable-stayed bridge at Tablazo Strait outlet of Lake Maracaibo), Batalla Naval en el Lago de Maracaibo (Naval Battle of Lake Maracaibo), and BCV on Venezuelan map as registration device. Security features include a 2-mm wide windowed security thread with demetalized BCV and a watermark of Simon Bolivar and electrotype BCV.
Specialty Collectible Banknotes
In addition, specialty banknotes like this Mauritania 500 Ouguiya Banknote, 2013, Specimen is also considered a collectible item. Not legal tender. It was printed by a Central Bank but, it’s a non-circulating banknote since it’s a Specimen banknote that’s printed to teach commercial banks about new banknote releases. Both sides of the note show a diagonal SPECIMEN overprint. Its obverse side features an ornate design. Its reverse side shows field workers and a mine entrance. Security features include a windowed security thread and a watermark of a bearded man and electrotype 500. Additionally, this note was withdrawn on 01 July 2018.
Test Banknotes
Banknote printing companies that work with Central Banks are also known for creating their own collectible banknotes. These collectible banknotes are normally called Test Banknotes. Not legal tender. They use the same materials and the same security features used on real banknotes issued by countries but, Test Banknotes usually have intricate designs that show off the capabilities of the printer. These are highly sought after by collectors. For exampe, De La Rue Giori printing company issued the 2,000 Leonardo da Vinci Test Note, 2000, Specimen. Not legal tender. Its obverse side features Leonardo Da Vinci, a High Renaissance painter who is considered as one of the greatest painters of all time. Its reverse side features a bust of Madonna of the Yarnwind. The note is equipped with a windowed security thread, and holographic silver seal to enhance its security features.
Novelty / Fantasy Banknotes
Now let’s move on to Novelty banknotes. Novelty banknotes also known as Fantasy banknotes are banknotes or coins that are NOT printed by any Central Bank or official government entity. They also do not have any exchange rate and cannot be traded for real currencies. This means that they cannot be used to purchase any goods or services and that banks do not accept them. Any company, organization or individual can make their own novelty banknotes for whatever reason, whether as a commemorative piece, religious piece, or souvenir. However, in legal terms, they cannot look or be sold as official currency, since it is then considered counterfeiting and can land you in prison. These novelty/fantasy banknotes can be designed to look like real banknotes but, usually they will have disclaimers saying that they are not legal tender. They usually have lavish colors and designs that would never make it on a real banknote.
Novelty Banknotes for Cultural Purposes
An example of a novelty banknote printed for cultural and ritual purposes is the Chinese Hell Money 10 Million Yuan Novelty banknote. Not legal tender. Its printed as burnt offerings to the deceased persons. The ritual of burning joss paper or hell money is a traditional way of sending material goods to beloved family members in the afterlife. On the obverse is an image of an ancient emperor while the reverse features a palace as well as dragons. The note comes predominantly in red with hints of yellow.
Fun Themes
A fantasy banknote printed for fun is the Authentic I.A.M. One 1 Million United States – USA Dollars Novelty / Fantasy Banknote. Not legal tender. It was designed and printed by the American Bank Note Company and was officially issued by IAM as collector series 1988. Its obverse side features an image of the Statue of Liberty, while the reverse side features the denomination in the center. The note is equipped with an engraved steel plate that creates a feel of steel quality on the note. It also has six latent images and three micro-printed messages visible under a magnifier. Placing the note under a UV light would show the four-word phrase that represents the very foundation of America magically appears while the surface of the note printed in invisible ink explodes into thousands of tiny particles of beautiful fluorescent.
Tourist Souvenirs
A very popular and widely recognized fantasy banknote hailing from Europe is the Zero Euro Europe Banknote, 2017. Not legal tender. It was issued as a souvenir banknote by the European Central Bank. The note shares many of the same characteristics of a real Euro except that they are marked as zero. Its obverse side features the Brandenburg Gate, Big Ben, the Eiffel Tower, the Colosseum, Sagrada Familia, Manneken Pis, and the Mona Lisa. Its reverse side depicts different cultural sites and historical landmarks around Europe.
Redeemable at Specific Locations
If you are a fan of Disney, they printed their own fantasy banknotes but, one interesting fact about these is that they can only be redeemed for goods or services at Disneyland theme parks, cruise ships, and Disney Store from 1987-2016. It was sold and printed by the Walt Disney Company. Its obverse side features a portrait of Mickey Mouse in a pink and blue background, with the denomination ONE DISNEY DOLLAR written in bold. Its reverse side features an animated image of the Walt Disney Palace. This banknote is not legal tender.
We hope that this guide helped you distinguish between both collectible and novelty banknotes. If you have more questions or need help on how to identify collectible and novelty banknotes you can reach out to us.
As a paper money collector, I have to point out that there are literally thousands of people worldwide who enjoy collecting fantasy/novelty banknotes—making them by definition a collectible, even if not printed by a government or state bank and not being legal tender. It may be that grading services do not value these as sources of revenue but they are nonetheless collectibles. And the article left out another large category (except for Disney dollars) that are known as local currency (what the grading services would label as scrip). These are immensely popular in the UK (but also in the US, with examples such as Berkshares) and can only be used in certain town or counties, or even just a small circle of businesses). The most commonly encountered examples are notgeld of the interwar inflation period in Germany and Austria, but were issued in many other countries. There are also many examples of prison or lager currency, and even concentration camp money, not to mention counterfeits—all of which are valued collectibles.
And there is a large international group of test note collectors—issued by the printing companies but NOT by national or state or town entities. They are also NOT legal tender but ARE still collectibles, many of them costing hundreds or even thousands of dollars (in other words, more valuable and collectable than many legal tender notes). There are also breakaway currencies such as the US Confederacy or Biafra and Katanga in Africa that no longer exist (and that were NOT recognized by the governments they broke away from) but they are still valuable collectibles in thousands of collections nonetheless.
Hello, We appreciate the input of a follow banknote collector. We will take all of this information into consideration. Thank you!