Questions about the manufacture and circulation of polymer banknotes (2024)

FAQs

Will the US ever switch to polymer banknotes? ›

For now, some big countries like the United States are sticking with their paper money. There are no plans for the US to convert paper dollars into plastic ones, said Cubaj. One reason: the exorbitant cost to replace the high number of vending machines nationwide so that they would take the new polymer notes, he said.

Advantages over paper currency

When compared with paper notes, a polymer banknote is more durable and damage-resistant; the banknote's plastic nature makes it waterproof and less likely to stain, and studies have shown that polymer banknotes last about 2.5 times longer than paper notes.

Polymer banknotes can get sticky when wet. That is also why the banknotes are relatively less comfortable to hold, count and transfer. Furthermore, the latter two points can be a problem for sorting machines at Central Banks. There is a risk that the colors of polymer banknotes fade.

Polymer banknotes usually have three levels of security devices. Primary security devices are easily recognisable by consumers and may include intaglio, metal strips, and the clear areas of the banknote. Secondary security devices are detectable by a machine.

Whilst no banknote is, or ever will be, counterfeit proof, our research suggests that techniques required to produce high quality counterfeit polymer banknotes are slow, expensive and require a high level of effort and technical expertise.

But nothing comes free, and though printing more money would avoid higher taxes, it would also create a problem of its own: inflation. Inflation is a general increase in the prices of goods and services throughout an economy.

Its thickness is 25 microns.

Plastic money's environmental benefits extend to the end of its life cycle, too. Whereas paper bills taken out of circulation are often shredded and put in landfills, polymer notes can be converted into pellets used to make everyday plastic items like lawn chairs.

In order to recycle old polymer banknotes, they are first shredded into small confetti-like pieces. The shredded banknotes are then passed through a special machine that melts them and makes them into pellets, which are then ready to be used as the raw material for recycling into other products.

Polymer notes are tough. It is very difficult to initiate a rip in a polymer note. However, once a tear is started, a polymer note will rip easily.

What are 2 disadvantages of polymers? ›

The disadvantages of polymers are: Low tensile strength. Ductility and plasticity under load. Thermal sensitivity.

Polymer Substrate

The plastic that Australian banknotes are printed on gives them a distinctive feel. A suspect banknote may feel thicker or thinner and lighter than a genuine banknote. Most counterfeits are printed on paper and can be easily torn. It is difficult to start a tear along the edge of a genuine banknote.

This means that whilst polymer notes will not burn, at around 175 degrees Celsius they will begin to melt and stick together. For a safe to be fire rated the temperature inside the safe typically cannot exceed 172 degrees Celsius during a significant fire event.

Polymer banknotes are water and oil resistant and can be wiped clean with a damp cloth. Polymer banknotes react to very hot temperatures and shrink or melt when ironed or exposed to open flames.

The note is printed on polymer, which is a thin and flexible plastic material. On the front of the note, you can feel raised print on the words 'Bank of England' and in the bottom right corner, over the smaller window. The printed lines and colours on the note are sharp and clear, with no smudges or blurred edges.

Why don't the US make dollar bills out of polymer like the NZ dollar notes instead of cotton and linen? Polymer is very durable and virtually indestructible. The US claims their special fiber blend lasts longer (21 months) than inexpensive polymer bills (15 months), and converting would be pricy.

Paper money

The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation. The U.S. Bureau of Engraving and Printing creates U.S. paper currency.

Physical currency has been updated around the world but not in the U.S., and while an increasing number of Americans are ditching cash for electronic payments, experts say cash isn't going away.

Title 18, United States Code, Section 504 permits black and white reproductions of currency and other obligations, provided such reproductions meet the size requirement.