On 24 March 2022, the Bank of Thailand (BOT) announced the preparation of a new 20 baht polymer banknote. Following this, the Director of the Banknote Strategy and Management Department published an article entitled “How good are polymer banknotes? Why are so many countries adopting it? ” His article aims to highlight the importance of polymer banknotes, their quality and to show that many countries are using them.
Although electronic payments have become increasingly popular, demand for banknotes has remained high in countries such as the UK, Malaysia, Singapore, Mexico and Canada. So far, the volume of banknotes in circulation has tended to increase continuously.
The country’s central bank has therefore decided to review its monetary policy and to develop the style and characteristics of the banknotes. The aim of this change is to increase the overall efficiency of Thailand’s banknote management.
4 reasons to adopt polymer banknotes
Durability: The technology for producing polymer banknotes has evolved significantly over the past 10-20 years. It has been improved to be more durable. In addition, the machines and technologies for printing and moving the banknote surface after printing have continuously evolved, learning from past experiences. Similarly, the properties of printing inks and coatings for the production of polymer banknotes have been improved and accepted worldwide.
Clean: Polymer banknotes are highly resistant to moisture and dirt. Case studies in different countries have shown that polymer banknotes have a lifespan 2.5 times longer than paper banknotes. Issuing polymer banknotes improves the quality of banknotes in circulation, making them newer and cleaner. Even in hot climates like Singapore and Malaysia
Security: against counterfeiting, polymer banknotes can be designed to have various anti-counterfeiting features and are more difficult to counterfeit than paper banknotes. Over the past 10 to 20 years, anti-counterfeiting technology has developed considerably. Case studies in many countries have shown that issuing polymer banknotes significantly reduces counterfeiting statistics.
Environmental friendliness: The environmental impact, including the carbon footprint, of polymer banknotes is lower than that of paper banknotes. This is because polymer banknotes have a much longer life span than paper banknotes.