2020: A Good Year for Polymer Banknotes Competition creates energy and change. It can be argued that 2020 was the year where the impact of there being two suppliers of polymer substrate in the banknote market started to be seen. The take-up of polymer by central banks accelerated, while investment brought new security features to market, more capacity and more recycling capability. The history of polymer banknotes is well known. The Reserve Bank of Australia first issued a commemorative polymer note on Guardian™ in 1988, followed by a circulating $5 banknote in 1992, with the number of banknotes on polymer steadily growing over the next 25 years. Large scale adoption of polymer by major currencies, including Vietnam, Romania, Singapore, Hong Kong, Mexico, and Canada meant that – by 2011 – the use of Along with circulating notes, approximately The move by Angola and the Saudi polymer had spread worldwide. The latter 40 commemorative notes have also been Central Bank to introduce polymer is was particularly significant because not only issued since polymer was first introduced. an important one, since both are high was it the first G7 country to adopt polymer, volumes users of banknotes. Egypt, but it made explicit that its decision was In a year that has seen an acceleration in another high volume country, has also based as much on the security offered by the number of banknotes converted to a announced the introduction of a polymer the substrate as its durability. polymer substrate, several trends stand out. denomination later this year. CCL Secure’s Guardian™ polymer substrate Confidence was responsible for this growth and, in The uptake in polymer demonstrates Dual supply expands choice 2013, was joined by another polymer that there is widespread confidence in The ability to source polymer banknotes option – De La Rue’s SAFEGUARD®, which polymer among a range of central banks, from two sources – with further options made its debut on the Fiji $5. denominational values and continents. already being developed – helps to address any concerns that central banks may have The growth has continued to accelerate. In total, 15 note issuing authorities issued had about converting to polymer and being By early 2021, polymer accounted for 3% new polymer notes – 11 for circulating reliant on a single supplier. of banknotes by volume and 14% percent notes (four of which for the first time), and by number of circulating denominations. a further four for commemorative notes The increased acceptance of polymer Over 50 banknote issuing authorities now (see chart below). appears to be driven by a number of factors, not least the growing evidence issue at least one polymer banknote. 147 Trinidad and Tobago and the East which demonstrates both the performance circulating banknote denominations are Caribbean states now join the 11 other benefits and cost savings that can be now, or will very shortly be, issued on countries who have already made the achieved by adopting polymer. polymer, up from c. 25 in 2010. transition to all polymer series, while This marks a sixfold increase in a decade. Costa Rica and the Bank of England will The influence of existing polymer users is Of this number, in denominations, roughly complete the move of their whole series also important: the decision by the Bank twice as many are produced on Guardian to polymer this year. of England to adopt polymer, for instance, clearly influenced similar decisions made as on SAFEGUARD. But of those issued England and Mexico are introducing high by other issuing authorities in the United since 2013, when De La Rue entered value denominations on polymer. Again, Kingdom, in Scotland and Northern Ireland, the market, around twice as many this shows confidence in the security of whilst its own decision had been influenced denominations have been introduced on the notes, especially when combined by the Canadians. SAFEGUARD. With two suppliers available, with the issuing authorities who have their the number of polymer denominations has complete series on polymer. Sensing the growing interest in polymer, tripled since 2013. 2020 saw both CCL Secure and De La Rue run informational webinars and other Guardian™ SAFEGUARD® communications to feed the interest of Circulating Banknotes Circulating Banknotes banks and issuing authorities worldwide. National Bank of Angola National Bank of Angola And just last month, the Bank of England Reserve Bank of Australia East Caribbean Central Bank awarded its second substrate supply Central Bank of Costa Rica Bank of England Bank of England Bank of Ireland, Northern Bank and Ulster Bank tranche under its framework agreement Banco de México (Northern Ireland) with both companies. Between them, De The Saudi Central Bank Bank of Scotland, RBS, Clydesdale Bank (Scotland) La Rue and CCL Secure provide all of the Central Bank of Trinidad & Tobago substrate for the Bank’s £5, £10, £20 and Central Bank of Uruguay soon-to-be-launched £50 production, with Commemorative Banknotes Commemorative Banknotes CCL Secure retaining 75% of the highest Banque du Liban Reserve Bank of Fiji volume denomination, the £20, and De Bank of Namibia La Rue receiving 65% of the £5, £10 and Central Bank of Nicaragua £50 production. Countries issuing one or more denominations on Guardian or SAFEGUARD polymer in 2020. 10 CURRENCY NEWS | POLYMER SUBSTRATES Currency News ran an expert opinion For instance, it reports a surprisingly low piece on this topic in the December 2020 carbon footprint associated with shipping edition, highlighting how machines can polymer waste for recycling, which opens run at speeds of up to 10,000 sheets per up viable recycling providers. hour on polymer and showing that anti- The Carbon Trust has certified that the static is not required once the set-up has carbon footprint on the Bank of England been optimised. polymer ‘fiver’ is 16% lower than its paper Investment in capacity, the predecessor. Furthermore, because environment polymer is part of a closed system (people Recycled polymer banknotes in the form of plastic don’t throw away banknotes), the notes pellets which are then turned into various household With five production lines across three products (© CCL Secure). locations worldwide, CCL Secure is are returned to the central bank at the end the dominant manufacturer of polymer of their life, enabling polymer banknotes to Expanded market choice and increasing substrate. But De La Rue is catching up – be recycled. awareness of the benefits of polymer last month it announced that it is expanding New security features are behind some fundamental changes its UK security features and polymer Polymer security features have also seen in attitudes and procurement practices production site to more than double its advances. In 2020, CCL launched Cinema™ within the commercial sector. Established capacity for polymer substrate, with plans and Vivid™ Colour. The Cinema feature papermakers/printers source polymer from to create a Centre of Excellence for polymer adds three-dimensional and movement both De La Rue and CCL Secure. De La substrate production by the end of 2021. effects integrated directly to the polymer Rue – via its printing arm – even uses CCL’s Between them the two companies are substrate, while Vivid transforms a plain Guardian for some clients. clearly gearing up to meet a growing global white image into full colour when seen Angola, for instance, let its preferred demand for polymer. under UV light. printers select their own substrate suppliers. The increasing need for a more Whilst CCL’s security features are, by Another example is Oberthur Fiduciaire, environmentally sustainable approach also definition, polymer-based, most paper- which printed for Uruguay but chose its plays in favour of polymer. Both companies based security features also work equally own polymer supplier. have put considerable effort into explaining well in polymer. In addition, there is a There are now several instances across the environment benefits of polymer, which growing trend for features to be either Asia, Africa, Europe and the Americas is consistently highlighted by lifecycle optimised or developed specifically for of countries who dual source Guardian analysis. The more durable substrate polymer. An example of the latter is De and SAFEGUARD, or who have switched means that fewer notes need replacing and La Rue’s SAFEGUARD ARGENTUM the polymer substrate between the the demand on raw materials is reduced. It silver feature, which enables mirror-like two suppliers. also means that notes remain in circulation free-form shapes to be incorporated into Debunking myths for longer, with consequent reduction in the substrate. transport and processing – with all else 2020 was also the year where there being equal, banknotes are recycled more were attempts to debunk industry myths. locally and have to be transported less Part of the effort was addressing the frequently to a central site for destruction perceived COVID-19 related risk of handling and replacement. banknotes (not just polymer). Environmental sustainability initiatives are A lot of effort went into providing evidence not new in the polymer banknote industry. that COVID-19 related risks were extremely CCL Secure has been providing support low for handling all banknotes – comparable to central banks for many years through its or lower, in fact, than other physical objects Guardian Global Recycling Program, which such as mobile phone screens, keypads on helps banks to establish recycling programs point-of-sale terminals and touch screens locally, leading to both environmental and on automated checkouts. CCL Secure, for social benefits. instance, established an end-user facing website – truthaboutplasticbanknotes. More recently, with the opening of the com – which addressed many of these Zacapu recycling plant in Mexico, CCL now Polymer notes have also resulted in a myths head on and promoted the benefits provides recycling at all of its production resurgence in the use of holograms (or of polymer to the wider public.