As the world's largest banknote printing factory, why is De La Rue facing bankruptcy?

De La Rue Company is the largest banknote printing factory in the world. Let's think about a problem. The importance of money to a country is self-evident. Why don't these countries print their own money, but give it to a company for printing? The reason is that printing money costs too much!

First of all, the printing process is very complicated and requires top-class printing equipment, which is a necessary big expenditure; Secondly, banknotes all over the world are facing a problem, that is, counterfeit banknotes, and counterfeit banknotes will emerge one after another. If you print money, you have to do research and development of anti-counterfeiting technology and update equipment, which is also a big expense.

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Let's think about the second question. Since the cost of printing money is high, what kind of country in the world will ask De La Rue to print money? The answer is a small country, the demand for paper money is relatively small, printing less money, and the cost is relatively high. If the cost is high, people will find someone to print it, or the country itself doesn't have much money. During the development of De La Rue Company, wars, coups and financial crises will occur in these countries, and many people will not give money or credit. Venezuela, for example, has no money to print money because it is sanctioned by a beautiful country.

Third, as we all know, printing money is profiteering, so the competition is fierce. De La Rue started his business because he did it early and cheaply, but the most important core competitiveness of this business is the strength background. De La Rue's background is average, but its competitors have many strong backgrounds, such as G&D from Germany, Canadian Banknote Printing Company, Swedish Crane Currency Company and so on. Before De La Rue, many contracts were taken away by peers and even investigated.

The fourth and most important reason is that with the development of technology and mobile payment, people don't use paper money much. You print paper money, so where does your business come from?

Therefore, the closure of De La Rue Company is a historical choice, and it is normal that technological progress, high cost, fierce competition, insufficient background and internal and external troubles lead to closure.