Federal Reserve Notes and Modern Currency

Federal Reserve Notes are the currency used in the United States today. They've been issued since 1913 and have evolved through several major design periods, security improvements, and denominations.

Origins of Federal Reserve Notes (1913)

The Federal Reserve Act of 1913 created the modern currency system:

Established the Federal Reserve System with 12 regional Federal Reserve Banks
Authorized Federal Reserve Notes as the official U.S. paper currency
Notes were initially backed by gold and commercial paper, providing stability and confidence
The system remains substantially unchanged in structure today

Modern Federal Reserve Notes (Post-1971)

When the U.S. abandoned the gold standard in 1971 (under President Richard Nixon):

Federal Reserve Notes became fiat currency – no longer redeemable for gold or precious metal
Notes are backed by the "full faith and credit" of the U.S. government
The value of the note is determined by supply, demand, and market confidence
This system persists today

Denominations in Circulation

The current denominations are:

$1, $2, $5, $10, $20, $50, $100

Historically, much higher denominations existed ($500, $1,000, $5,000, $10,000) but were discontinued in 1969 due to lack of demand and concern about money laundering.

Major Design Eras

1929-1995: The Standard Design Era

Federal Reserve Notes from 1929 through 1995 featured:

Same basic design across all series years – only portraits, series dates, and signatures changed
Green and black ink only (no color)
Relatively simple security features by modern standards
Portrait centered on the front, building or design on the back

1996: The Security Thread and Color-Shifting Ink Era

In 1996, the Treasury introduced major security improvements:

Security thread embedded in the paper – Visible when the note is held to light, includes text and becomes increasingly sophisticated over time
Color-shifting ink – The ink in the denomination on the lower right corner shifts color when the note is tilted (green to gold or blue, depending on denomination)
Watermark – When held to light, a faint watermark matching the portrait becomes visible
These features made counterfeiting significantly more difficult

2004-2010: Colored Notes

Starting with the $20 bill in 2004, the Treasury began adding subtle color to notes:

$20 bills: Green and peach tones
$50 bills: Green and blue tones (2004)
$100 bills: Green and blue tones (2013)
$5 bills: Green and purple tones (released March 13, 2008)
$10 bills: Green and orange tones (released March 2, 2006 — Series 2004A)

The $1 and $2 bills have not been redesigned with color — they remain primarily green and black. The $1 bill has received no major redesign since 1963. There are no current plans to redesign the $1 or $2 notes.

Source: Bureau of Engraving and Printing: Currency Redesign History

Front of the redesigned U.S. $20 Federal Reserve Note showing the subtle green and peach color tones, Andrew Jackson portrait, and security features introduced in the 2004 redesign — The redesigned U.S. $20 note. This was the **first denomination to receive the new color treatment** (2004). Subtle peach and green color tones are visible in the background — a deliberate anti-counterfeiting measure, since color is far harder to reproduce accurately than black-and-white designs. The $20 also shows a color-shifting numeral "20" in the lower-right corner and a watermark portrait of Jackson. Source: Wikimedia Commons · Public domain (U.S. government work)

2013: New $100 Note Security Features

The most recent major redesign (2013) introduced cutting-edge security:

3D Security Ribbon – An embedded ribbon with visual depth effects, showing bells and numerals
Enhanced color-shifting ink – Even more sophisticated than previous versions
Enhanced security thread – More detailed and difficult to counterfeit
These features are being gradually introduced to other denominations

Front of the Series 2013 U.S. $100 Federal Reserve Note showing the blue 3D Security Ribbon, the color-shifting bell in the inkwell, and Benjamin Franklin's portrait with watermark — The Series 2013 redesign of the U.S. $100 note. Key security features visible: the **blue 3D Security Ribbon** woven into the paper (center strip) shifts between bells and 100s as you tilt it; the **color-shifting inkwell** (lower right) contains a bell that shifts from copper to green; and a faint **portrait watermark** of Franklin appears when held to light. Source: Wikimedia Commons · Public domain (U.S. government work)

Series Years and Signatures

Modern Federal Reserve Notes carry a series year (e.g., "Series 2009" or "Series 2017") that indicates when the design was approved, not when the note was printed. The note also bears the signatures of the current (at the time of printing) Treasurer of the U.S. and Secretary of the Treasury. When these officials change, a new signature pair appears on notes, creating a new series designation.

Federal Reserve Districts and Serial Numbers

Modern Federal Reserve Notes include:

A district seal (one of the 12 Federal Reserve Banks)
A serial number with a prefix letter corresponding to the district
This system allows tracking of which Federal Reserve Bank distributed the note

Collectors and Modern Currency

Modern Federal Reserve Notes ($1995 and later) are increasingly collected as:

Fancy serial collectors seek desirable numbers in modern notes
Colored note collectors pursue complete sets of the different colors
Star note collectors focus on rare print runs of modern notes
The large amount of modern currency available makes these categories accessible to many collectors