Canada switched to plastic money, also known as polymer banknotes, in the early 2010s. The transition from paper to polymer currency was aimed at enhancing security features and improving durability. The decision to switch to plastic money was driven by several factors, including increasing counterfeiting threats, the need for better technology, and the desire to align with international best practices.
Prior to the transition, Canada, like many other countries, used paper banknotes for its currency. Although paper money had been in use for centuries, advancements in technology paved the way for the development of polymer banknotes. Polymer banknotes are made of a thin, flexible plastic material that offers increased security and longevity compared to traditional paper bills.
The initial push for polymer banknotes in Canada came in the late 1990s and early 2000s, when counterfeiting activities started to rise. Criminals were becoming increasingly sophisticated in their methods, posing a significant threat to the integrity of Canadian currency. A study conducted by the Bank of Canada in 2002 found that the counterfeit rate of Canadian banknotes had reached a peak of 470 parts per million. This alarming statistic prompted the government and the Bank of Canada to explore alternative solutions to counterfeiting.
In 2004, the Bank of Canada began researching the feasibility of switching to polymer banknotes. They conducted an extensive study, assessing the security features, durability, and cost implications of polymer banknotes in comparison to paper money. The study concluded that polymer banknotes were more secure, offered greater longevity, and were cost-effective in the long run.
After a series of successful trials and consultations with various stakeholders, including the public, businesses, and the vending machine industry, Canada announced its decision to switch to polymer banknotes in 2011. The new polymer banknotes were designed with enhanced security features that made them more difficult to counterfeit. These features included holographs, transparent windows, raised ink, and tactile features for the visually impaired.
The transition to plastic money began with the introduction of a new C$100 bill in November 2011. It featured an image of Nobel laureate Sir Robert Borden and incorporated several innovative security features. The new bill was met with a positive response from the public, who appreciated the enhanced security measures and the banknote’s durability.
Subsequently, the Bank of Canada introduced other denominations of polymer banknotes, including the C$50 bill in March 2012, the C$20 bill in November 2012, and the C$10 bill in November 2013. The transition to polymer currency was completed with the release of the new C$5 bill in November 2013. Each denomination featured unique and vibrant designs, showcasing iconic Canadian landscapes, historical figures, and cultural symbols.
The switch to plastic money also benefited the environment. Polymer banknotes have been proven to last two to three times longer than paper banknotes, significantly reducing the need for printing and circulating new bills. Additionally, polymer banknotes are recyclable, further minimizing their environmental impact.
Canada’s transition to polymer banknotes aligns with international best practices. Several countries, including Australia, New Zealand, and the United Kingdom, had already adopted polymer banknotes before Canada made the switch. These countries reported significant improvements in deterring counterfeiting and increasing the lifespan of their currency.
Overall, the switch to plastic money in Canada was driven by a need for increased security and durability. By adopting polymer banknotes, Canada aimed to combat counterfeiting threats, incorporate advanced security features, and align with international standards. The successful transition to plastic money has not only enhanced the security of Canadian currency but also contributed to the country’s efforts in reducing its environmental footprint.
