1. A method of encoding comprising: decomposing an image into wavelet transform coefficients; quantizing the wavelet transform coefficients with a high resolution scalar quantizer; quantizing a set of background wavelet transform coefficients with a low resolution scalar quantizer; rounding the set of quantized background wavelet transform coefficients; multiplying the set of rounded quantized background wavelet transform coefficients by the low resolution scalar quantizer; and rounding all wavelet transform coefficients; wherein quantizing the wavelet transform coefficients is performed by one or more processors.