In recent years, polymer banknotes have been added to the denominational banknote mix in various countries, replacing or complementing traditional cotton-based notes. Driven by the need for longer lifetimes, improved resistance to wear and tear, and enhanced protection against counterfeiting, central banks and printing works are increasingly choosing polymer substrates as part of their long‑term currency strategies.
An overview of polymer banknotes in circulation (2023) Source: Polymer Banknotes: A Review of Materials, Design, and Printing
Secure destruction of polymer banknotes combines controlled loading, two-stage size reduction and continuous monitoring. The goal is to ensure banknotes are fully destroyed while keeping operators safe. The process uses pre-crushing and granulation to reach the required final shred size, typically around 6 × 6 mm, depending on central bank security requirements. This is done without melting the material or damaging downstream equipment.
Security is always the starting point while destroying banknotes. These banknotes are loaded into a locked, automatic feeding conveyor, using a secure system that ensures operators cannot access the machine during operation. This reduces human error and lowers the risk of unauthorised access compared to manual destruction.
In the first stage, a pre-crusher cuts full bundles of banknotes into smaller pieces. This step uses slow, controlled cutting with knives designed for the strength and flexibility of polymer material. The result is a consistent strip size that can be safely moved to the next stage.
An air extraction system then moves the strips to the second stage: the granulator. In this stage, high rotating knives further reduce the material until it passes through a calibrated sieve. This second step defines the final shred size, typically around 6 × 6 mm. The system can be adjusted to meet different national or internal security standards if required.
Anti-static means of transport are used to prevent sticking of loose shreds and reduce blockages, which is especially important for polymer due to its static properties. In addition, ionisation is applied at strategic points in the system to neutralise residual charge.
Central banks that move from cotton to polymer have shown that existing destruction systems can often be adapted with the right upgrades. This helps extend the lifetime of equipment and avoids full system replacement, while still meeting new destruction needs.
Efficient handling of polymer shreds depends on stable airflow, control of static electricity, and reliable transport between system stages are designed. The extraction system connects the destruction and collection units using fans, ducts, sieves and filters.
After granulation, shreds pass through a sieve and enter the air transport system. The design of the ducts – such as diameter, bends and airflow speed – is important to prevent material from building up in certain areas. The system is designed to ensure smooth and continuous transport to the collection unit.
A key challenge with polymer is static electricity. As shreds move through the system, they can build up static charge and stick to pipes, bends or filters. If this is not controlled, it can reduce efficiency and increase maintenance needs.
To solve this, ionisation units can be placed at key points. These remove static charge so the material can flow freely. In practice, correct placement makes the system stable and reduces the need for manual cleaning.
Air filtration is also essential. Fine dust created during destruction must be captured to protect air quality and equipment. Self-cleaning filter systems are used to remove dust from filter elements automatically. This keeps pressure levels stable and reduces energy use.
Noise reduction and safety are also important parts of the design. Acoustic enclosures reduce sound levels, while interlocked doors and pressure monitoring systems ensure safe operation and compliance with safety standards.
The final stage focuses on collecting, handling and potentially recycling the shredded material. A well-designed system ensures that shreds are clean, separated and ready for further processing.
After transport, shreds and dust enter a collection unit where filters separate fine particles from larger fragments. A discharge system then moves the cleaned shreds into containers such as bags or big bags. This allows safe handling without direct contact with dust.
A key decision is whether polymer shreds are collected separately from other materials like cotton-based banknotes. Separate collection is preferred when recycling is important, since mixing materials can reduce the quality of the recycled output.
After collection, polymer shreds can be processed into secondary raw material by melting and pelletising. At higher temperatures, the material is turned into pellets that can be used in durable plastic products. These are not suitable for new banknotes, but can be used in many industrial applications.
The success of recycling depends on local infrastructure and partners. Where recycling options exist, polymer shreds can become a useful raw material and help reduce disposal costs. Where this is not available, the focus is on secure and environmentally responsible disposal.
More central banks are now including polymer destruction and recycling in their sustainability and ESG (Environmental, Social and Governance) strategies. This supports circular economy goals and reduces environmental impact compared to traditional disposal methods.
In practice, successful projects start with a full review of the system, including destruction equipment, air handling and local recycling options. This helps balance security, efficiency, cost and sustainability, and ensures a future-proof solution.
As a plastic-based substrate, polymer offers specific recycling and recovery options for end-of-life banknotes. Learn more in our article on recycling polymer banknotes, or visit our shred handling page and contact our experts to discuss solutions for your shreds. To stay informed about unfit currency management, subscribe to this blog for regular updates.
If you are currently considering a transition to polymer banknotes and would like to explore how Royal Dutch Kusters can support you with secure destruction and recycling solutions, please contact us. Our specialists can help you assess the impact on your existing destruction processes, identify the right adaptations or upgrades for polymer substrates, and design a future-proof concept that combines security, operational efficiency and sustainability. Whether you are in the planning phase or already running pilot series, we are available to discuss your requirements, share best practices from other central banks and printing works, and develop a tailored solution that fits your cash cycle and regulatory framework.