The Bank of England is responsible for maintaining confidence in the currency, by meeting demand with good quality genuine banknotes that the public can use with confidence. Designing new banknotes that take advantage of developments in security features is crucial to delivering this remit, the bank says. For the past three years the Bank has done research looking at the materials on which banknotes are printed. In particular, the Bank has reviewed the relative merits of printing banknotes on polymer rather than cotton paper.
The Bank says that it’s confident that printing on polymer would bring considerable benefits to durability and quality of banknotes, while enhancing the security which the public associates with Bank of England banknotes. The Bank has discussed a move to polymer with the cash industry, retailers and financial institutions on the technical issues and impact of switching to polymer. The initial reaction was positive, according to the Bank.
Given that banknotes play a role in everyone’s day to day lives, the Bank is doing public consultation before deciding whether to print on polymer. It’s hosting a number of events across the UK over the next two months, to give the public an opportunity to learn more about polymer notes and to provide feedback. Consultation will end on November 15, and the Bank’s final decision, in the light of feedback, will come in December 2013.
Deputy Governor of the Bank of England, Charles Bean, said: “Polymer banknotes are cleaner, more secure and more durable than paper notes. They are also cheaper and more environmentally friendly. However, the Bank of England would print notes on polymer only if we were persuaded that the public would continue to have confidence in, and be comfortable with, our notes. The results of the consultation programme on which we are embarking will therefore form a vital part of our assessment of the merits of polymer banknotes.”
Smaller banknotes
If a decision is made to move to polymer, the Bank will also introduce smaller banknotes. These will be more in line with the size of those in other countries and the larger denomination banknotes will be easier to fit into purses and wallets. This will not alter the current look of Bank of England banknotes: the existing format of tiered sizing will be maintained, i.e. the higher the denomination, the bigger the note. They will also continue to feature Her Majesty the Queen, and to celebrate people who have made a universally-recognised and lasting contribution in their particular field of work. The first polymer banknote would feature Winston Churchill, and the second Jane Austen.
Chris Salmon, the Bank’s Executive Director, Banking Services and Chief Cashier, said: “The forthcoming consultations demonstrate the Bank’s commitment to transparency in relation to banknote issues, and are aimed at enhancing awareness and understanding of polymer so that the public can feed into the Bank’s decision in an informed way. I am looking forward to participating in a number of consultation events over the next two months.”
Notes
If a decision is taken to proceed with printing on polymer, this will initially only be for the new-style £5 and £10 banknote. Polymer banknotes would be introduced one denomination at a time, with the Churchill £5 in 2016 at the earliest.
Polymer banknotes are manufactured from a transparent plastic film, specially coated with an ink layer that enables it to carry the printed design features of banknotes. The material allows the inclusion of ‘windows’ or clear portions in the design, which enhance protection against counterfeits.
Smaller banknotes will also reduce issues with cash accepting technology, which are often designed around international currencies which typically have smaller notes. The Bank consulted with the Royal National Institute of the Blind on the proposed size change and they have indicated their support. If the decision is taken to proceed the £5 note will measure 125mm in length and 65mm in height. Each subsequent denomination will measure 7mm longer and 4mm higher than the previous denomination; therefore the £10 note will measure 132mm x 69mm. These will be a little larger than the Euro notes.
Further details about polymer, including detailed fact sheets, and a list of dates for regional visits, can be found at http://www.bankofengland.co.uk/banknotes/polymer/Pages/default.aspx.
A short video of Chris Salmon discussing why the Bank is considering polymer banknotes can be found on the Bank’s website: http://youtu.be/80EZ3hp6Jg0.
And a short video of Victoria Cleland, Head of Notes Division (who was interviewed by Una Riley in the September print issue of Professional Security magazine), providing more details about polymer banknotes can be found on the Bank’s website http://youtu.be/RGhgsMd6vBA.
Over 20 countries issue polymer banknotes. These include Australia, which introduced them in 1988, New Zealand, Mexico, Singapore, Canada and Fiji, which introduced them in 2013. More information on Bank of England banknotes and details about polymer can be found at: http://www.bankofengland.co.uk/banknotes/polymer/Pages/default.aspx.
