Polymer banknotes are banknotes made from a polymer such as biaxially oriented polypropylene (BOPP). Such notes incorporate many security features not available in paper banknotes, including the use of metameric inks. Polymer banknotes last significantly longer than paper notes, causing a decrease in environmental impact and a reduced cost of production and replacement. Modern polymer banknotes were first developed by the Reserve Bank of Australia (RBA), Commonwealth Scientific and Industrial Research Organisation (CSIRO) and The University of Melbourne. They were first issued as currency in Australia during 1988 (coinciding with Australia's bicentennial year). In 1996 Australia switched completely to polymer banknotes. Other countries that have switched completely to polymer banknotes include; Brunei, Canada, New Zealand, Papua New Guinea, Romania, Kuwait and Vietnam. The latest countries to introduce polymer banknotes into circulation include: the United Kingdom, Cape Verde, Chile, The Gambia, Nicaragua, Trinidad and Tobago, Republic of Maldives and Nepal.
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History
In 1967 forgeries of the Australian $10 note were found in circulation and the Reserve Bank of Australia was concerned about an increase in counterfeiting with the release of colour photocopiers that year. In 1968 the RBA started collaborations with CSIRO, and funds were made available in 1969 for the experimental production of distinctive papers. The insertion into banknotes of an optically variable device (OVD) created from diffraction gratings in plastic as a security device was proposed in 1972. The first patent arising from the development of polymer banknotes was filed in 1973. In 1974 the technique of lamination was used to combine materials; the all-plastic laminate eventually chosen was a clear, BOPP laminate, in which OVDs could be inserted without needing to punch holes.
An alternative polymer of polyethylene fibres, marketed as Tyvek by DuPont, was developed for use as currency by the American Bank Note Company in the early 1980s. Tyvek did not perform well in trials: smudging of ink and fragility were reported as problems. Only Costa Rica and Haiti issued Tyvek banknotes; test notes were produced for Ecuador, El Salvador, Honduras and Venezuela but never placed in circulation. Additionally, English printers Bradbury Wilkinson produced a version on Tyvek but marketed as Bradvek for the Isle of Man in 1983; however, they are no longer produced.
In the 1980s, Canadian engineering company AGRA Vadeko and US chemical company US Mobil Chemical Company developed a polymer substrate trademarked as DuraNote. It had been tested by the Bank of Canada in the 1980s and 1990s; test $20 and $50 banknotes were auctioned in October 2012. It was also tested by the Bureau of Engraving and Printing of the United States Department of the Treasury in 1997 and 1998, when 40,000 test banknotes were printed and evaluated; and was evaluated by the central banks of 28 countries.
Development
Polymer banknotes were developed in Australia to replace paper banknotes with a more secure and more durable alternative.
The BOPP substrate is processed through the following steps:
BOPP is a non-fibrous and non-porous polymer. Compared to paper banknotes, banknotes made using BOPP are harder to tear, more resistant to folding, more resistant to soil, waterproof (and washing machine proof), harder to burn, easier to machine process, and are shreddable and recyclable at the end of their lives.
Security features
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. Tertiary security devices may only be detectable by the issuing authority when a banknote is returned.
Etymology
The use of the term "polymer" in place of "plastic" to describe banknotes was introduced on 1 November 1993 by the Reserve Bank of Australia, at the launch of its $10 note. Jeffrey Bentley-Johnston and his firm were retained to assist in the launch of the $10 note after the $5 note received a cool reception. Having earlier worked in a firm that designed and constructed synthetic fibre plants, Bentley-Johnston recognised the polymer nature of the new banknote and so proposed the use of that term.