Cotton banknotes; What are they made from? How are they made? How long do they last? Are they recyclable? In this blog, we will discuss their pros and cons.
What are cotton banknotes made from?
How are cotton banknotes made?
What are the advantages of cotton banknotes?
What are the disadvantages of cotton banknotes?
What happens to damaged, unfit cotton banknotes?
Cotton banknotes are made from cotton paper, a mix of cotton (75%) and linen (25%). In Europe, for instance, so-called comber noils are used. These are short cotton fibers that are a waste stream from the textile industry. The exact ratio of cotton, linen and other materials are kept secret and can vary between countries.
The reason to use cotton paper is that it is light, printable and suitable for security features. Furthermore, cotton fibers are strong, yet soft and flexible. This combination makes cotton paper pure and durable.
The Central Banks are responsible for the coordination of the production of new banknotes. First, the cotton is separated from the cotton bales and transferred into paper pulp. This is the foundation for the cotton paper, which is rolled up on big reels. The next step is watermarking the paper. After security control of the watermarks, the rolls are cut in smaller reels. Then, depending on the design of the banknote, the security thred, window, metallic foil or hologram stripes are added. Finally, the paper is cut into sheets.
Now, the paper is ready to be printed. This happens at the Central Banks or designated Printing Works. Printing the paper generally contains four printing stages. After a final check, the paper is cut into the size of banknotes we know.
Also read: Turning cash in to a natural resource; Recycling banknotes
Also read: The five pros and cons of polymer banknotes
Each banknote returns for a check-up to the Bank or Cash Centre every once in a while. The exact period (weeks, months) differs per country and denomination. When the banknote is ripped or damaged, it is labeled as unfit and will be destroyed. Several decades ago, this was done by means of incineration. Today, Central Banks and Printing works shred their misprinted or unfit banknotes, so they can be further processed or recycled in a safe and more sustainable matter.
Also read: Shredding and granulating; Sustainably destroying unfit banknotes
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Sources
Banknote World
De Nederlandsche Bank (DNB)
Business Finance Articles
World Wild Life (WWF)