A new wave of “folk art“ flooded social networks in the first days after Bulgaria's accession to the Eurozone. Photos of 5, 10 and 20 euro banknotes painted with obscene messages and slogans such as “F*ck the euro“, “No to the euro“ and “For you, Bulgaria, I pick a flower“ are being shared virally as a form of protest. However, financial experts and bank employees warn that this act of “rebellion“ could hit the authors' pockets directly, leaving them with useless pieces of paper in their hands..
While consumers are having fun with their creativity on the new currency, the rules of the European Central Bank Bank (ECB) and the Bulgarian National Bank (BNB) are categorical. According to the current regulatory framework, banknotes that have been intentionally damaged are not subject to exchange.
"When there is sufficient evidence that euro banknotes have been intentionally damaged, their exchange shall be refused and they shall be detained in order to prevent their return to circulation," state the ECB's rules for handling unfit banknotes.
Writing words, numbers or slogans on banknotes is classified as “intentional damage“. Unlike torn or accidentally laundered money, which banks replace when more than 50% of their surface is present, “scratched“ money with political or cynical messages is confiscated without compensation.
The problem is not just theoretical. Shopkeepers are already instructed to be particularly careful when accepting banknotes. If a cashier accepts a banknote with the words “No to the euro” written on it, he risks the bank not recognizing it when reporting turnover.
"National central banks shall refuse to exchange and retain euro banknotes if they know or have sufficient reason to believe that they have been intentionally damaged,” states the ECB Decision of 2013. The only exception is if the holder proves that he acted “in good faith” - something that is difficult to claim when a banknote has a swear word written on it.
The analysis of the situation shows that such a “protest“ is economically illogical. A banknote is a bearer security. When someone damages it, he does not cause damage to the issuer (the ECB) or the state, but destroys his own purchasing power ability.
Practice shows that such actions are short-lived, as participants quickly realize that they are practically cutting their own money. Currently, the BNB and commercial banks strictly follow Regulation No. 18 and Regulation No. 48, which regulate the control over the quality of banknotes.