Paying with plastic
What if "paying with plastic" meant using cash? I was intrigued to learn that Singapore is experimenting with plastic currency.
They tested a 10-dollar polymer note last year, which seemed to work well, so they are starting in with 2-dollar notes (colored purple!) this year. I hope to get a chance to see this currency when I am there in a couple weeks.
The idea is that plastic is much more durable than paper and hence will last about four times longer in circulation. This brings up an interesting point: who is in charge of retiring old paper bills that are becoming too munged-up to use?
A bit of digging reveals that old bills are sent back to the Federal Reserve, which shreds and buries them. It seems that anyone can do this, including private citizens. My guess is that many of the 30,000 "customers" that ask for replacement money from the Federal Reserve Bank are other banks-- that's why we always get such nice, crisp bills there. (Imagine what you'd think of your bank if they gave you old, wrinkled currency). Other businesses have little incentive to send old bills back-- it's easier just to pass the buck.
And sure enough, a cartoon makes it all clear.
But even if Singapore's polymer bills last four times longer than paper, they will still wear out. I wonder if it's recyclable plastic...
They tested a 10-dollar polymer note last year, which seemed to work well, so they are starting in with 2-dollar notes (colored purple!) this year. I hope to get a chance to see this currency when I am there in a couple weeks.
The idea is that plastic is much more durable than paper and hence will last about four times longer in circulation. This brings up an interesting point: who is in charge of retiring old paper bills that are becoming too munged-up to use?
A bit of digging reveals that old bills are sent back to the Federal Reserve, which shreds and buries them. It seems that anyone can do this, including private citizens. My guess is that many of the 30,000 "customers" that ask for replacement money from the Federal Reserve Bank are other banks-- that's why we always get such nice, crisp bills there. (Imagine what you'd think of your bank if they gave you old, wrinkled currency). Other businesses have little incentive to send old bills back-- it's easier just to pass the buck.
And sure enough, a cartoon makes it all clear.
But even if Singapore's polymer bills last four times longer than paper, they will still wear out. I wonder if it's recyclable plastic...
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