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The U.S. Treasury uses an obscure paper made of cotton and flax, specifically as an anti-counterfeit measure. Esquire did a fantastic article on this a little while back at http://www.esquire.com/news-politics/a24292/benjamin-hundred...:

"In the late 1980s, a new counterfeit hundred, the most perfect counterfeit yet made, began appearing in circulation. It looked identical to the real thing, betrayed visually, at least, under only the most rigorous forensic testing. (Some minor flaws were visible after enormous copies of the bills were made, but these were probably purposeful. Its makers didn't want to be suckered by their own handiwork.) Although the counterfeit came to America mostly on boats from gangs in China, it was eventually traced to North Korea, where it was believed to have been manufactured by the North Korean government on its own presses. Since then, new generations of the same counterfeit have appeared, including a big-head version, mimicking the redesigned hundred that entered circulation in 1996. This family of bogus notes has been given its own title, one that befits its almost mythical stature: the North Korean supernote."

"Some stories about the supernote sound more like legend than fact — like its being laundered by a bank in Macao called the Banco Delta Asia, or several thousand of them somehow appearing overnight in Lima, threatening to tip over the entire Peruvian economy. But there remains one truth in the supernote's history that has never been forgotten: It was first detected at the Central Bank of the Philippines by a teller, given pause only by the same nebulous flaw that betrays the majority of counterfeits. It just didn't feel right."



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