Alexei Volkov
As countries are becoming more environmentally conscious, they are considering the environmental impact of their currency, along with its durability and security. Polymer banknotes are made from synthetic polymers such as biaxially oriented polypropylene (BOPP) and have been adopted by over 45 countries, including the United Kingdom, Canada, Australia, New Zealand, Vietnam, and Nigeria. Polymer banknotes are more durable, damage-resistant, and harder to counterfeit than paper notes.
| Characteristics | Values |
|---|---|
| Number of countries using polymer banknotes | 45 |
| First country to use polymer banknotes | Haiti (promotional version) |
| Year of first use | 1980 |
| First country to fully adopt polymer banknotes | Australia |
| Year of full adoption | 1996 |
| Other countries with polymer banknotes | Brunei, Canada, Fiji, Mauritius, New Zealand, Papua New Guinea, Romania, Vietnam, the UK, the Philippines |
| Benefits of polymer banknotes | More durable, harder to counterfeit, more security features, longer-lasting, lower environmental impact, reduced cost of production and replacement |
| Drawbacks of polymer banknotes | Slippery, stick to each other, don't fold as well as paper |
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What You'll Learn
Australia's history with plastic money
Australia has a long history of currency, from Aboriginal trade based on exchange and bartering to the use of makeshift currencies such as rum by colonists. The discovery of gold in 1851 led to the minting of Australia's own gold coins and the development of banking. However, it was not until the passing of the Australian Notes Act in 1910 that the Commonwealth Treasury was assigned responsibility for issuing banknotes.
In 1966, Australia transitioned from the Imperial system to a decimal currency, introducing new security banknotes to prevent forgery. Unfortunately, forgeries of the new $10 note appeared within a year. This prompted the Governor of the Reserve Bank of Australia (RBA), Dr HC (Nugget) Coombs, to seek a scientific solution to the problem. In 1968, a 'think tank' of scientists from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and various universities was convened to tackle the issue.
CSIRO's solution was to incorporate security features such as a see-through panel and hologram embedded in the note, as well as using plastic as the substrate. These polymer banknotes offered increased durability, environmental benefits, and reduced dirt and disease transmission compared to paper notes. However, due to the conservative nature of the banking industry, it took nearly two decades for these revolutionary notes to be released to the public.
In 1988, Australia became the first country to introduce plastic banknotes, coinciding with its bicentennial year. The commemorative bicentennial $10 note was the world's first plastic film note with optically variable devices (OVDs). By 1996, the Australian dollar was fully switched to polymer banknotes, making Australia the first country to transition completely from paper to polymer currency. Today, polymer banknotes are used in over 20 countries, offering enhanced security, durability, and environmental benefits.
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The UK's transition to polymer notes
Polymer banknotes are made from synthetic polymers such as biaxially oriented polypropylene (BOPP) and offer several advantages over traditional paper notes. They are more durable, lasting significantly longer than paper notes, and are more resistant to tearing and soiling. This increased longevity leads to a reduced environmental impact and lower production and replacement costs. Polymer notes are also more secure, incorporating security features not available in paper banknotes, such as the use of metameric inks and optically diffractive foils. The use of polymer notes also reduces the carbon footprint, with the £5 note having 16% lower carbon emissions than its paper equivalent, and the £10 note having 8% lower emissions.
The transition to polymer notes in the UK has not been without criticism or opposition. Some businesses in the UK cash industry have expressed concern about the lack of research into the cost impact of the introduction of polymer notes. There was also some criticism from animal lovers and religious groups regarding the use of a minimal amount of tallow, an animal fat product, in the production of the polymer bills. However, the Bank of England declined to make changes, citing the high cost of switching to alternative sources of oil.
The UK is not the first country to transition to polymer notes. Polymer notes were first issued in 1988 in Australia, which now uses polymer exclusively. Other countries that have adopted polymer notes include Canada, Fiji, Mauritius, New Zealand, Romania, and Vietnam. The decision to switch to polymer notes is often influenced by factors such as durability, security, and environmental impact. For example, the Bank of Canada began its move to polymer banknotes in 2011 after assessing the environmental impact of producing paper and plastic bills.
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Canada's adoption of plastic currency
Plastic currency, also known as polymer banknotes, is made from synthetic polymers such as biaxially oriented polypropylene (BOPP). Polymer banknotes were first issued in 1988 in Australia, which now uses polymer exclusively. Polymer currency is also used in over 20 countries, including Canada, Fiji, Mauritius, New Zealand, Papua New Guinea, Romania, and Vietnam.
Canada adopted plastic currency in 2011, replacing its traditional cotton-and-paper banknotes. The first plastic banknote introduced was the $100 bill, featuring the image of the 8th Prime Minister, Sir Robert Borden. The $20 bill was launched in 2012, with the visage of Queen Elizabeth II. Other Canadian plastic currency includes the $5, $10, $50, and $100 bills. The Bank of Canada's move to polymer banknotes was influenced by several factors, including security, durability, and environmental impact.
Polymer banknotes offer several advantages over traditional paper currency. They are more secure, with additional security features not available in paper banknotes, such as intaglio, metal strips, and clear areas. Polymer notes are also more durable, lasting significantly longer than paper notes. This reduces the need for replacements, resulting in cost savings for the government and consumers. The longer lifespan of polymer notes also contributes to a reduced environmental impact by decreasing production and replacement rates.
In addition to their practical benefits, Canada's plastic currency also celebrates the country's history and achievements. The bills feature Canadian astronauts, the research vessel CCGS Amundsen, and the Inuktitut Indigenous word for 'Arctic'. They also showcase national values, such as research and innovation, with designs including microscopes, vials of insulin, and an electrocardiogram (ECG) to honour the invention of the pacemaker.
While some Canadians have praised the new plastic currency for its cleanliness and durability, others have expressed mixed reactions to its slippery texture and tendency to stick together due to static cling. Nonetheless, Canada's adoption of plastic currency aligns with global trends towards more sustainable and secure forms of currency.
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The Philippines' proposed shift to polymer
The Philippines first proposed a shift to polymer banknotes in 2009. However, the proposal was not pushed through due to concerns about the potential impact on the country's abaca industry. The idea was revived in 2021 during the COVID-19 pandemic, as polymer banknotes can be sanitised with less damage than paper money, and they are also more durable, cheaper to issue, and harder to counterfeit.
In April 2022, the Bangko Sentral ng Pilipinas officially released the 1000 peso bill polymer banknote into circulation. The central bank distributed an initial 10 million pieces for the rollout, with another 490 million pieces due to be distributed the following year. This was a small fraction of the billions of old banknotes in circulation.
The shift to polymer banknotes in the Philippines is mainly for better security, as the intricate designs of the new bills make them harder to counterfeit. The new notes also have environmental benefits, as they are more durable and have a lower carbon footprint than paper money. They can be recycled, whereas soiled paper notes are required by law to be collected and burned for disposal. The polymer notes are also considered more hygienic as they can be disinfected or washed, an important consideration following the COVID-19 pandemic.
The proposed shift to polymer in the Philippines has not been without criticism. Some have criticised the decision to replace the images of three World War II heroes on the notes with a depiction of the Philippine eagle. However, this change has been justified as a reminder of the country's rich biodiversity and its commitment to a sustainable future. The current designs date back to 2010 and an update is due anyway.
In December 2024, the BSP (Central Bank of the Philippines) announced that they would be issuing polymer notes in the denominations of 500, 100, and 50 pesos in the first quarter of 2025.
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Other countries using plastic money
Polymer banknotes are made from synthetic polymers such as biaxially oriented polypropylene (BOPP) and were first issued in 1988 by Australia, which now uses polymer exclusively. Polymer is now used in over 20 countries, including Australia, Canada, Fiji, Mauritius, New Zealand, Papua New Guinea, Romania, and Vietnam.
Australia
Polymer banknotes were first issued in Australia in 1988, coinciding with Australia's bicentennial year. By 1996, the Australian dollar was switched completely to polymer banknotes, becoming the first country to do so. The Reserve Bank of Australia printed a limited number of $10 commemorative polymer banknotes for Australia's 1988 bicentennial, and the public readily accepted them.
Canada
The Bank of Canada began its move to polymer banknotes in 2011, after assessing the environmental impact of producing paper and plastic bills. A life-cycle assessment examined the effect, including primary energy demands and the potential for global warming, of each stage of production, from growing the cotton to produce paper or producing the raw material for polymer notes through the destruction and disposal of worn notes. The first plastic banknote was the 100 Canadian dollar bill. Today, Canada issues denominations of 5, 10, 20, 50, and 100 Canadian dollars.
Other countries
In 2015, the Maldivian government accepted plastic banknotes and issued a 5,000 rufiyaa bill to commemorate the 50th anniversary of independence. However, this banknote has since been withdrawn from circulation. In 2004,Brunei started issuing polymer banknotes due to recurring counterfeit cases. Today, Brunei issues denominations of 1, 5, 10, 20, 50, 100, 500, 1,000, and 10,000 Brunei dollars.
In 2016, the government of Great Britain began the transition from paper to polymer banknotes, with the £5 note being the first issued. Polymer notes last longer and do not get dirty as quickly, making them an excellent solution for regions with high humidity and high temperatures. In March 2015, the Clydesdale Bank in Scotland began to issue polymer £5 notes, marking the 125th anniversary of the building of the Forth Bridge.
Some notaphily experts allege that test notes were circulated on Tyvec for Ecuador andVenezuela. However, these countries have since gone back to issuing conventional paper money. In 2022, the Philippines officially released the 1,000 peso bill polymer banknote into circulation.
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Frequently asked questions
Apart from Canada, several other countries have switched to plastic money or introduced it into commemorative or general circulation. These include:
- Australia
- New Zealand
- Romania
- Nigeria
- Vietnam
- Fiji
- Papua New Guinea
- Mauritius
- The Philippines (proposed)
- The United Kingdom
Australia first issued plastic money in 1988 and by 1996, the Australian dollar was switched completely to polymer banknotes.
Polymer banknotes are made from synthetic polymers such as biaxially oriented polypropylene (BOPP).
Polymer banknotes last significantly longer than paper notes, reducing the cost of production and replacement. Polymer notes are also more secure and harder to counterfeit. Additionally, they have a lower environmental impact due to reduced energy demands and global warming potential during production.
Polymer banknotes can be sanitized with less damage compared to paper banknotes, making them more hygienic. They are also waterproof, and at the end of their lifespan, they can be recycled into everyday plastic items.
