UK Planned to Replace Paper Money with Plastic Banknotes

Britain planned to replace the paper money with plastic banknotes, which are said to be more durable as well as waterproof. Another advantage of these plastic banknotes is that they are difficult to be forged. Paper money has been used in Britain for over 300 years.  The radical renovation in Britain might see polymer sterling currency in circulation in just three years time.

The Bank of England already publicised the 1 billion pounds tender from 2015 for the process of printing of these notes at the press in Debden, Essex. Bidders are expected to cope up with this change from paper currency to plastic right from the beginning of the contract as the part of this process. The contract since 2003 was held by De La Rue, which is one of the only two polymer notes makers. Initially, the Bank would produce lower denominations like fiver (five-pound note).

De La Rue prints over 150 currencies and recently it had produced new plastic banknotes for Pacific island of Fiji. The first country to introduce plastic notes was Australia where the currency was introduced in 1988 as a step to curtail counterfeiting.

Some of the other countries that might issue polymer notes include Vietnam, Mexico, Papua New Guinea, New Zealand and Romania. Plastic fiver was introduced in Northern Ireland in 1999 for indicating the mark of a Millennium.

Why plastic notes can be beneficial than paper currency?

Plastic notes are more durable than the paper notes. Also, these polymer notes prove to be more hygienic because they attract fewer bacteria and do not form crease or tear. Apart from being waterproof, the plastic notes are also easier to be used for vending machines.

The primary feature of plastic notes is that they offer clear window which also contains optical variable device through which light can be split easily into the component colours. This makes it very difficult for anyone to counterfeit the currency. These notes are eco-friendly as well as recyclable.

However, the cost of producing these notes is a bit higher than the paper currency. Also, the initial cost needs to be invested so that the vending machines as well as ATMs can adapt to them.