polymer banknote

polymer banknote, form of cash currency made from polypropylene, a synthetic resin built up by the polymerization of propylene, that was developed as an alternative to traditional paper banknotes. Polymer banknotes were first widely issued in Australia in 1998 as a tool to prevent counterfeiters from replicating bills.

Advantages over paper currency

A banknote made of polypropylene has several advantages over its paper counterpart. It is more difficult to counterfeit because it contains a number of security features, such as see-through plastic windows and text, metal films that react to different angles of visible light, and fluorescent compounds that can react to ultraviolet light (see also fluorescence). 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. In addition, worn polymer banknotes removed from circulation can be recycled into household, building, and industrial products. However, the colors on polymer banknotes can fade over time, and they can feel more slippery when dry and stickier when wet than paper currency.

Origin

The origin of polymer banknotes can be traced back to the issuance of enhanced paper bills by the Reserve Bank of Australia in 1966. The notes contained metal threads, a watermark (a faint design visible under certain lighting conditions), and raised printing. Although Australian currency developers hoped that these features would prevent criminals from counterfeiting, soon after these bills appeared, forgers began producing good-quality counterfeits.

In 1968 scientists from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) joined with university researchers to develop new ways to stop money forgeries. Australian chemist and CSIRO chief research scientist Dave Solomon led a team that combined optically variable devices (OVDs) with a thin polymer base. OVDs are features that change with light or movement, such as holograms that appear as three-dimensional images and pictures that change color. The thin polymer base on which they chose to print the money is resistant to tearing and other damage. If crumpled, a polymer bill returns to its original shape. The designs on the polymer resemble those on traditional paper money. However, Australian designers elected to frame the OVDs on the polymer banknotes with a see-through, ink-free area.

Once the polymer process was perfected, the Australian government conducted a test to see whether the public would use such bills. 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. During the 1990s Australia converted all its banknotes to polymer, becoming the first country to do so. Some 45 countries had adopted the use of polymer banknotes in their monetary and banking systems by 2023—including Canada, the United Kingdom, Russia, China, India, Brazil, Mexico, and Saudi Arabia.