Polymer Money to Replace Paper Money in Canada

The big excitement in the last few weeks has been talk about polymer money coming to Canada. We're already familiar with the idea of paying with plastic, of course. But when we think of plastic money, we often think of Canadian credit cards. In November, though, that will all change. We will see Canadian bank notes made from polymers, bringing a new meaning to paying with plastic.

Polymer Bills Add Security

The first note to be released in polymer form will be the $100 bill, which will be released in November of 2011. The Bank of Canada is releasing other polymer notes in descending order of value. $50 polymer bank notes are expected to be in circulation by March 2012, while $20, $10 and $5 are scheduled to enter the money supply by the end of 2013.

Polymer bills are expected to add security to transactions. With the Canadian dollar seeing an increase in popularity and desirability as it gains value against the U.S. dollar, the temptation to counterfeit bigger Canadian bills is rising. Polymer bills, though, should be much harder to counterfeit than the current bills made from cotton-based paper. Additionally, the polymer-based bills should be much more durable. This video from the Bank of Canada offers a look at the new polymer bills:

Cool Design of the New Canadian Bills

Not only are these bank notes more secure, but they have a cool, innovative design. The new bank notes feature raised ink, and will also have transparent windows that include security features. When was the last time you could look through your money? The new design is quite slick, putting Canada firmly ahead in the cool money category around the world.

Canada isn't the first country to use polymer bills, though. Polymer currencies have been around for about two decades, according to Castanet.net. More than 30 countries use polymer-based bills. However, Canada's version of plastic money is cutting edge, going beyond many of the currencies already in circulation. The money not only looks cool, and feels cutting edge, but it should take some time for forgers to catch up.

The change to money is moving forward. It appears that paying with plastic will no longer be just for the use of credit cards. Now, paying with plastic is something anyone can do -- even if they are using cash.

Thanks for including this post in the Canadian Finance Carnival and in the Post-Downgrade Roundup!