The CBCDG was established by the G10 central banks in 2000, in order to counter the threat of computer-based banknote counterfeiting. In 2004, CBCDG announced the development of a "
Counterfeit Deterrence System" (CDS) incorporating a technical means for the detection of banknotes. This system was reportedly developed by the U.S.-based
watermark technology company
Digimarc.
Adobe Systems was subsequently the subject of controversy in when it was revealed that the firm had voluntarily adopted the CDS in
Adobe Photoshop, preventing Photoshop from processing some images of currency. Jasc (publisher of
Paint Shop Pro) and Adobe stated that they had implemented CDS; they reportedly did not receive technical details of the CDS
algorithm (in other words, it was provided to them as a
black box). Some artists and professional graphic designers suggested that the CDS would make it more difficult for them to use Photoshop to produce images that used currency in lawful ways.
Steven J. Murdoch has begun a technical investigation of how the CDS works. As of 2022, Digimarc was still partnered with the CBCDG; the company announced that it had renewed an existing agreement with the group, which would now last through the end of 2029. == Member banks ==