08:23 11 September 2013
The time of cotton-paper banknotes maybe coming to an end for UK. Following the footsteps of Canada, New Zealand, and Australia, the Bank of England is likely to introduce polymer banknotes starting from 2016. The bank’s deputy governor confirmed that the introduction of polymer banknotes is a “done deal” this is despite the fact that the final decision won’t be coming until December.
£5 note is expected to be the first one to become polymerized. Material to be used is expected to be thinner compared to paper and overall, they will be 15per cent smaller. The new banknotes will look the same in design to the current paper notes.
The new banknotes are said to be twice as durable as paper and are more likely to survive for a longer period of time. However, they will cost 50per cent more to make. Bank of England is believed to be spending about £35-40 million a year just to replace paper notes in circulation.
The bank will be doing road shows over the next two months with the aim to get public opinion across the UK before making the final decision on December.
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