Tags: money | polymer | paper | plastic

Plastic Bills Replacing Paper Money

By    |   Monday, 11 November 2013 01:58 PM

Should you get ready for plastic bills to replace the paper bills in your wallet?

Many countries are considering dropping paper in favor of polymer, a fancy word for plastic.
Although polymer bills are more expensive to produce, they're cheaper over the long run because they last longer. With their extra security features, like holograms and metallic foil, they're also more difficult to counterfeit.

Australia pioneered plastic money in the 1980s. The country retains a monopoly on production, making the bills for about 20 other countries, according to CNNMoney.

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A commercial printer in the U.K, DeLaRue, may challenge Australia's monopoly with its plastic bill.

Canada just completed the transition to plastic. The Bank of Canada just rolled out its $10 and $5 polymer bills, which join $100, $50, and $20 plastic bills already circulating, notes North Country Public Radio.

The Bank of England is considering replacing its cotton-paper five-pound and 10-pound banknotes with polymer bills in 2016, The Wall Street Journal reports.

"We took the view some years ago that it was sensible to look seriously at the possibility of switching some strains [of banknote] to polymer," said Charles Bean, the central bank's deputy governor for monetary policy, at a news conference in London.

New BOE Governor Mark Carney did not know of the proposal until assuming the office last year, but supports the plan, Bean said. Focus groups indicate that Britons seem to like the new notes, bank officials told the Journal.

Despite the advantages, the U.S. is not jumping on the polymer bill bandwagon due to the lobbying power of banknote producers and bankers' conservative nature, says the MIT Technology Review.

"The U.S. and the EU have to be very careful about new and untested technologies," Stane Straus, a polymer bill consultant, told the MIT Technology Review. "I think they will be one of the last to switch to polymer, because they want to be convinced beyond a doubt that there is no problem."

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Personal-Finance
Should you get ready for plastic bills to replace the paper bills in your wallet?
money,polymer,paper,plastic
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2013-58-11
Monday, 11 November 2013 01:58 PM
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