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Canada to unveil the first in a series of polymer banknotes

Polymer banknotes are better for ATMs because they don't shed tiny bits of ink and dust that can disable ATMs by confusing the machine's optical readers, say industry officials.

June 16, 2011

The Bank of Canada on Monday will unveil the first in a series of polymer banknotes, which will replace cotton-and-paper bills, such as those circulated in the United States. The polymer banknotes are designed to reduce counterfeiting and to improve durability.  

In addition, polymer banknotes are better for ATMs because they don't shed tiny bits of ink and dust that can disable ATMs by confusing the machine's optical readers.

"There will be less dust and better quality from polymer notes, which will mean fewer rejected bills and fewer ATM jams," said Shaun King, vice president of International Sales for Triton in Calgary, Canada. ATM deployers, however, may have to make minor changes to their machines so they are able to dispense the polymer banknotes, King said. Triton is the largest off-premises, or white-label ATM deployer, in Canada with 18,000 machines.

James M. Flaherty, finance minister, William J.S. Elliot, commissioner of the Royal Canadian Mounted Police and Mark J. Carney, governor of the Bank of Canada, will display the $100 and $50 banknotes during a photo opportunity at Bank of Canada's offices in Ottawa. The government officials will not take questions from journalists.

The Bank of Canada will begin circulating the $100 banknote in November and the $50 banknote in March 2012. The $20, $10 and $5 banknotes will be unveiled and issued by the end of 2013.

The banknotes are printed with polymer material, which is a smooth durable film developed specifically for the currency.  The polymer material is expected to last at least 2.5 times longer than current cotton-and-paper bills, making the notes better for the environment. 

As a result, Canadian Bank Note Company, Limited, and BA International Inc., two Ottawa-based printers, will have to print fewer polymer banknotes over the life of the series, Canadian officials said.

Canada joins 23 countries, including China and Nigeria, that are circulating polymer banknotes. Bank of Canada officials will discuss the polymer banknotes at ATM Industry Association conference in Canada, beginning next week.