Plastic Banknotes: Bank of England launches roadshow for new notes

The Bank of England has confirmed its plan to issue plastic banknotes beginning in 2016, and has launched a public roadshow to gauge public opinion before coming to a final decision in December.

The new polymer notes are resistant to dirt and liquid and stand up to the washing machine better than conventional linen rag and cotton fiber notes. They can shrink under extreme heat, however, so the bank says best not to iron them.

Though the new notes would cost 50 percent more to produce, they will stay in circulation 2.5 times longer than the current banknote, which survives about a year. And despite being made from polymer, the Bank argues reduced water use during production will result in environmental benefit.

The transparent plastic would allow for more sophisticated anti-counterfeiting measures, though the Bank says they will remain thin and flexible enough for wallets and purses.

Twenty other countries have adopted polymer banknotes, and seven of those are using plastic for all denominations. Plastic notes have been in circulation in Australia for more than two decades, and unfit notes are recycled into plastic items including plant pots.

Canada, whose last central bank governor, Mark Carney, is now the governor of the Bank of England, has also adopted plastic notes. Mexico, New Zealand and Singapore also use plastic notes.

"The Bank of England would print notes on polymer only if we were persuaded that the public would continue to have confidence in, and be comfortable with, our notes," he said.

If approved, the switch would start with the new £5 note featuring Sir Winston Churchill in 2016, with the Jane Austen £10 note to follow in 2017.