Why do banknotes coming out of the ATM always look new?

Good question. To answer it, let’s start from the beginning. The European Central Bank is the legal issuer of euro banknotes but the national central banks of the euro area are responsible for maintaining the quality and the good circulation of euro banknotes in their own country.
In the Grand Duchy, the Banque Centrale du Luxembourg (BCL) is in charge of the production and distribution of banknotes and coins in a quantity and quality required for the good functioning of payment channels

Banks give or receive banknotes from the BCL depending on withdrawals or deposits of their own clients. The BCL checks the authenticity of banknotes and separates acceptable banknotes that can be reissued into circulation from inadequate banknotes that have to be withdrawn from circulation because they are damaged or counterfeited. The condition and authenticity of banknotes are duly checked according to high common standards established by the Eurosystem in order to ensure the integrity of euro banknotes in circulation across the whole euro area.

 The BCL destroys banknotes that do not meet the quality criteria, reissues adequate banknotes into circulation and replaces destroyed banknotes with new ones in order to ensure a consistent monetary circulation and to satisfy the increasing demand for banknotes

Acceptable and new banknotes are returned into circulation via the automated teller machines (ATMs) of the banks and other customer-operated devices.

Now you understand why ATMs never issue soiled, worn, torn, holed, hand-drafted or taped banknotes. They are withdrawn from circulation and destroyed by the Banque Centrale du Luxembourg...

11/2021