Follow UK Investment Immigration, follow UK Economy: Recently, the UK proposed issuing a new type of polymer banknote and plans to release the first batch of five-pound notes featuring the portrait of Winston Churchill in 2016.
On Wednesday, the Bank of England announced that it would accelerate the transition from paper money to polymer banknotes and decided to issue the first batch of new polymer notes in 2016.
This plan will mark the end of the bank's 320-year history of paper currency. The Bank of England is not the pioneer of polymer banknotes. Bank of Canada Governor Mark Carney has already implemented this idea, and polymer banknotes are currently in circulation at the Bank of Canada. Furthermore, in Australia, polymer banknotes have been in circulation for 20 years.
Carney held a public discussion specifically on the issue of polymer banknotes. After they were put into use at the Bank of Canada this summer, people found that polymer banknotes are more hygienic and more durable than paper money. However, there has been disagreement within the bank for several years regarding the use of polymer banknotes.
Bank of England staff visited major UK shopping centers and corporate groups to collect public opinion. The lifespan of polymer banknotes is six times that of the paper currency currently in circulation, which has also quelled concerns about environmental issues. The Bank of England stated that although the production cost of polymer banknotes is higher, their durability can compensate for this drawback, and it is expected to save 100 million pounds.
Laboratory test results show that polymer banknotes will only shrink and melt when the temperature reaches 120 degrees Celsius, so they are better preserved than paper money after being washed in a washing machine, but high-temperature ironing may cause more severe damage.
The Bank of England's preliminary plan is to issue one denomination at a time, with the first batch of five-pound notes featuring Winston Churchill to be issued in 2016, and the 10-pound notes featuring Jane Austen to be issued in 2017. Then, notes featuring the Queen's portrait will continue to be issued. However, the colors of the polymer banknotes will remain consistent with the current paper currency.
