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SPECIMEN: ISSUE 5
Exceptionally fine detail. Rich tonality. A modern classic.
CAMEO™
WINDOW ELEMENTS
6Best Practice
Polymer Banknote Recycling Goes Global
As the Guardian® Global Polymer Recycling Program is officially launched, it is clear that recycling polymer banknotes is a fast-growing trend amongst polymer-using central banks.
10Industry Interview
G&D and Kusters: Expertise at the Razor’s Edge
Two industry leaders in banknote shredding and destruction share their insights into how their equipment works with polymer banknotes.
14Specimen Exclusive
The Nicaraguan ExperienceSix years after their launch, senior officials from Banco Central de Nicaragua talk candidly about the nation’s experience in introducing polymer banknotes.
18Feature Story
Evolution Becomes Revolution The design of the award-winning Polish 20 zloty note stems from a stunning sixth-generation window feature. Here, we look at how multi-generational window features in Guardian® banknotes over two decades led to this ‘overnight’ success.
3Insight
Keeping You Notified
Exactly what happens to used polymer banknotes when processed through a compounding extruder? It’s a warming story.
Also, a look at how central banks can hold in their hands a sample of their future Guardian® banknote.
4Banknote Design
Vignette Design Evolves Into The CAMEO™ Portrait
From simple to complex, the humble vignette has developed dramatically into a highly-detailed, multi-tonal portrait design.
Contents
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From Polymer Note to Bead – and Beyond! Creating long-term value from recycled polymer banknotes involves holistic thinking. Before a shred of polymer banknote heads up the conveyor belt and into a polymer recycling extruder, the end-use for the recycled plastic material needs to be identified and understood, the optimum plastic compound formulated, and the ingredients specified.
Austen Ramage is Martogg LCM’s Product Manager at Martogg Group, an Australian-based
polymer distribution,
plastics compounding and recycling company. His team manages the recycling portion of the business, which involves processing post-industrial plastic waste feedstocks into recycled polymers to make a variety of new products.
“Before Martogg LCM sources a plastics scrap-waste stream, our laboratory technicians analyse the material to identify its composition and then use their knowledge of polymers to formulate a recycled product which has value to the plastics converter market,” says Mr Ramage. “And the waste stream from Innovia Security is an ideal recycle feedstock because it is very consistent and can be used to make a wide range of recycled polymer products.”
With the product formulation in place, the recycling process involves carrying the shredded banknote material up a conveyor belt and into the polymer recycling extruder. The materials are melted from flake form, then compounded. During the heating and mixing process, the volatile inks in the Innovia material either
vaporise and are vented away, or remain in the
mix and are compounded into the molten resin.
Venting is an important part of the process
because the release of volatile gases helps to
ensure the production of consistent-quality
recycled polymer. The molten polymer mixture is
then conveyed along the recycling extruder and
any unmolten contaminants are filtered out. It
is then pushed through a water-cooled dye and
hole-cut template where it solidifies and is cut
into small pellets or beads. Water is removed
from the beads, which are conveyed into a
holding vessel where they are quality-checked
and then packed into one-tonne bulk bags ready
for sale.
“Recycled polymers are used typically for non-
food-contact products. End-user applications
include the building and construction industry,
which is ideal because it means we’re putting
recycled material into long-life applications,”
says Mr Ramage.
INSIGHT
Strong Environmental Credentials Available to Polymer-Using Nations
As the reality of climate change and its associated environmental pressures turn the world’s attention to lowering carbon emissions, a new political, social and business agenda of environmental awareness has developed.
While many players in the banknote industry already run their operations under strict environmental controls, the larger challenge for the industry comes down to a simple proposition: as an industry, how can we substantially lower our carbon footprint?
As our article Polymer Banknote Recycling Goes Global on page 6 reports, the introduction of polymer banknote recycling is a 180-degree departure from the traditional approach of shredding and compacting paper banknotes into briquettes that are then either burned or buried. Central banks that use polymer banknote substrate now have the choice to recycle 100% of their banknotes, and many are already taking up that option.
The recycling story is an exciting one for our industry. Many central banks using Guardian® have been working closely with PolyTeQ Services, the customer service division of Innovia Security, to develop their recycling capabilities. Across the last three years, the PolyTeQ team has been hard at work creating a network of recyclers around the planet who have incorporated polymer banknote recycling into their operations.
It is on this basis that Innovia Security is pleased to announce that the Guardian® Global Recycling Program is now official. Already eight of Guardian®-using central banks are engaged in full recycling, and another three have a complete program in place and will “hit go” once a sufficient volume of used notes has been returned to the bank. Encouragingly, all central bank customers are now engaged in developing their recycling capability.
In meeting a political agenda, a central bank being able to recycle its banknotes satisfies a growing environmental and social need. More importantly, it is another small step towards the possibility of creating a sustainable environment for future generations.
Steve Casey Editor
From the Editor’s Desk
Editorial
Editor Steve Casey
Deputy Editor Carlos Fernandez
Editorial Consultant Jaclyn McRae
Contributors Gustavo Ascenzo Odi Batistatos Chris Catlin David Finlayson Gavin Glassey Trevor Kennedy Lachlan McDonald Raul Sierra
Design Next Brand Strategy & Design
Here’s The ProofWhen it comes to considering Guardian® polymer substrate, potential customers are stepping into a whole new paradigm of banknote management. It begs the question: what will the future look like?
Through its concept design, substrate design and prepress departments, Innovia Security can answer that question.
By integrating gravure cylinder production into its in-house operations in 2004, Innovia Security took control of a critical function in the production of its polymer substrate.
No longer exposed to the risk of external suppliers, the prepress team targets zero imperfections in its cylinder production, while working to meet the specific design needs of its customers and the specific technical requirements of security features.
Understanding how to manufacture cylinders exactly to customers’ expectations was a steep learning curve. But the prepress team’s years of experience have paid off, with cylinder production increasing five-fold, and turnaround significantly reduced.
A key objective for Innovia Security is to ensure
that the production cylinder delivers the same result as the quality-control proofing cylinder, which is made prior to going to the press. Through sustained trials over many years, together with the support of its ink supplier, the prepress team has combined systems and materials that enable it to produce in-house single proofs (on its proofing equipment) with similar quality to a printing press.
As a service to customers who are working through their decision-making on banknote design and feature selection, the substrate design and prepress department provides high-quality examples of overt and covert features, spot colours and other innovative design ideas. These tangible samples enable customers to make decisions with confidence, adding a whole new meaning to the expression ‘Here’s the proof’.
Keeping You Notified
INSIGHT
No longer exposed to the risk of external suppliers, Innovia’s prepress team
targets zero imperfections in its cylinder production.
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SPECIMEN: ISSUE 5BANKNOTE DESIGN
Vignette Design Evolves Into The CAMEO™ Portrait
The differences between vignettes and CAMEO™
Historically, the predominant banknote vignette
colour has been white. But today vignettes
can be applied at the edge of a clear window
in a variety of colours, as evidenced on the
maple leaf design of the Canadian polymer
series. This assists with design integration
and denomination differentiation without
compromising the durability of the banknote.
The design opportunities in terms of shape and
colour are only just being discovered and further
strengthen the ability of design on Guardian®
polymer banknotes to work seamlessly with
traditional offset and Intaglio print features. It is
also a cost-effective way to create highly overt,
bespoke substrate for each denomination in a
series, adding further barriers to opportunistic
counterfeiters to convert a low-denomination
note to a higher denomination.
A further strength of the feature is its inherent
“perfect” registration. The manufacturing process
and use of the feature in a window produces an
image located in exactly the same position on the
front and back of the note.
In comparison, the more advanced CAMEO™
feature is a design in the style of a Victorian
cameo brooch. ‘Cameo’ is a method of carving
an object such as an engraved gem, item of
jewellery or vessel that commonly features a
raised (or positive) relief image, which contrasts
with Intaglio’s negative image. Traditionally,
‘Cameo’ only referred to works where the
relief image was of a contrasting colour to the
background. This was achieved by carefully
carving a piece of material with a flat plane where
two contrasting colours met. The first colour was
then removed – with the exception of the image
itself – to leave a contrasting background. This
same philosophy has been used to good effect in
a more modern substrate.
The evolution
Initially created to add security and visual
reference to the window, vignettes were first
introduced in Australia in 1992. Notes included
vignettes in the shapes of stylised flowers,
instruments, animals and landmarks created
using solid linework.
The next step in the evolution of vignettes
was reached during the development of the
Malaysian five-ringgit in 2004. In this design, a
building was included featuring a half-shadow
image and half-vignette. This concept became
so popular that later the Brunei series, from
2011, included a similar concept of a multi-tonal
building in perfect registration to a multi-tonal
shadow image.
Similar to the initial Chilean Guardian® polymer
series which started with the 2,000-peso in
2004, this included a simple window design and
a WinBOSS® Intaglio feature. In the series issued
in 2011, there is a clear example of a substitute security feature approach where the three lower denominations (in Guardian® polymer) have a CAMEO™ portrait feature and the two higher denominations (in cotton-paper) have a watermark. Each CAMEO™ portrait corresponds to the Intaglio portrait to assist in public authentication and security.
Using an alternative view, the Chilean series introduced portraits within the window in order to replace the watermark from the previous note series. The feature is easier to authenticate, without the need to hold the note up to the light or requiring good lighting conditions. The feature also draws attention to the window and the use of reversed text surrounding the portrait.
In the case of Chile, the overriding driver behind the adoption of this new technology was to enhance security so it was easier for the public to use (the CAMEO™ would be the same as the Intaglio portrait), work in all lighting conditions
(unlike a watermark, which only works with
transmitted light) and be a strong and effective
deterrent to the most recent counterfeiting
threats such as screen printing, due to the fine
line-screen resolution required.
The technology
The evolution of simple vignettes into CAMEO™
portraits was facilitated by developments
in gravure printing technology, and Innovia
Security’s experience, to ensure consistent
quality and durability of the print. In addition,
feedback from adversarial analysis and
counterfeiting trends showed a more complex
CAMEO™ image was an effective method to
counteract threats from screen printing and the
use of cut-and-paste windows.
Cut-and-paste is a crude but common method
of counterfeiting polymer banknotes. The
counterfeiter prints the note on gloss paper and
cuts out the window. The use of more complex
window shapes with a CAMEO™ portrait is
a simple but effective design approach in
combating counterfeits. As such, CAMEO™
portraits that involve more intricate designs not
only create a highly engaging window experience
but also make a counterfeit attempt clearly
distinguishable.
PolyTeQ Services also contributed data on how
the CAMEO™ wears in circulation. Thanks to a
unique ink formulation and substrate printing
techniques, the feature has proven highly durable
and remains useable for the entire working life
of the note. Equivalent rates of ink wear are
observed for both CAMEO™ and the note in its
entirety.
CAMEO™ will continue to push further ahead
of the counterfeiter through the development
of print equipment capabilities that will enable
further design options and increased window
complexity.
Traditionally, vignettes were based on solid designs or linework of relatively simple symbols. They
lacked any tonal range and had little integration with the rest of the banknote and window. In the past
15 years vignettes have evolved into highly elaborate, multi-tonal and technically-challenging CAMEO™
portraits. The key driver has been increased security and better utilisation of window security features.
CAMEO™ is a simple, secure and intuitive feature recognisable by the public. Increasingly, it
is seen as a far more effective feature than a multi-tonal mould-made watermark as it works
in both reflected and transmitted light, has tighter feature registration and can be closely
integrated into the banknote design.
Today vignettes can be
applied at the edge of a
clear window in a variety
of colours.
The Costa Rican 1,000
colones and the Chilean
5,000-pesos note display
clear and highly-detailed
CAMEO™ features.
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It was tennis legend Martina Navratilova who said: “The difference
between involvement and commitment is like eggs and ham. The chicken
is involved but the pig is committed.”
In environmental terms, this is the leap central banks can make using polymer banknote substrate. Companies are aware of the need to be environmentally conscious, but recycling toner cartridges and batteries is one thing; hundreds of millions of banknotes is another.
The banknote industry is like many others in the modern age: inspired to adopt environmentally-friendly products and practices. Most countries are striving to minimise landfill waste, while more stringent packaging laws and “take-back” laws for electronics and appliances are becoming more popular.
Delivering a comprehensive recycling capability for such an eponymous societal product as banknotes enables central banks to demonstrate their leadership and commitment to the future.
Polypropylene is a commodity material known for many applications and products. It is a globally-traded commodity with a commercial value based on several supply-and-demand factors – one of which is the price of oil. Its commercial value is such that recycling companies will buy consistent forms of polypropylene waste to recycle and use when the product specification can accept material in a non-pure form. Granulated polymer banknote waste has also attracted commercial interest,
and is purchased by recycling companies around
the world.
Compelling evidence
A growing body of research confirms the
environmental credentials of recycling polymer
banknotes. Comprehensive independent
environmental studies in Canada and England
found polymer substrate’s impact is up to 60%
lower on the nine internationally-accepted
measures of environmental pollution. They
include acidification, global warming and water
consumption.
Those studies do not, however, include the
end-of-life treatment for banknotes – with the
data showing additional environmental benefits
for recycling polymer notes into other useful
products using suitable recycling equipment.
Historically, the destruction of paper banknotes by either burning or burial was done on the basis of security, given that using banknotes for any other purpose was not appropriate. Since the entry of polymer banknotes into the market, some exploration has been conducted on the option of recycling them in conjunction with paper banknotes. For this to happen however, one of the main challenges yet to be solved is
how to separate ink soaked into the paper fibres.
Without recycling as a viable option, shredding
and compacting these paper notes into
briquettes that are then either burned or put
into landfill are the only options – both waste
practices that carry varying degrees of cost to
the environment. The same treatments can be
applied to polymer banknotes.
A metric used to compare the environmental
impact of end-of-life methodologies is “natural
capital profit” and “natural capital loss”.
The concept is based on the fact that economic
activity and its by-products consume natural
resources (ie. air, land, water). The metric
shows which activities carry an environmental
cost and how heavy it is. It also shows which
activities deliver a net environmental gain by not
consuming natural resources.
There are three end-of-life methods that can be used for banknotes
“Waste-to-energy” is a process in which shredded banknote material is compacted into briquettes and burned at high temperatures. About 95% of the original material is consumed (ie. leaving 5% ash) and the heat generated is typically used to power steam generators to make electricity. Further, when polymer material is burned at high temperatures, a process called anhydrous pyrolysis takes place in which a liquid fuel similar to diesel is generated.
The second option – and perhaps the most common end-of-life method for paper banknotes today – is landfill, in which the briquettes are buried. It’s a long-used practice seen as unsustainable and now being addressed through reduce-reuse-recycle campaigns aimed at minimising the volume of waste deposited in landfills.
The Bank of Canada’s calculations show that waste-to-energy treatment of banknotes is estimated to carry a natural capital loss of C$204 per tonne, while landfill has a relatively
smaller environmental impact but still has a natural capital loss of C$13 per tonne.
In contrast, central banks that use polymer banknote substrate have the option to recycle 100% of their banknotes. Shredded polypropylene is treated to dissolve and neutralise the printing inks, with the base film then processed into small pellets that are sold to recycled plastics manufacturers. Recycled plastic products are all around us: park benches, garbage bins, gardening products and the like. Remarkably, the recycling of polymer banknotes, according to the Bank of Canada’s calculations, carries a natural capital profit of C$219 per tonne.
There’s a strong mutual benefit for the central bank and the recycler. A significant cost to the recycling industry of processing post-consumer products is the cost of collection, sorting and eliminating contamination of suitable products. This cost/activity is not generally required for banknotes as all unfit banknotes are returned to the issuing authority. As with all banknotes, polymer notes are shredded and granulated
using standard equipment (see G&D and Kusters: Expertise at the Razor’s Edge on page 10).
As such, due to the security requirements of a central bank in managing its product, the economic viability of recycling polymer banknotes is enhanced for the recycler who receives “conveyor-belt-ready” material for processing.
BEST PRACTICE
Polymer Banknote Recycling Goes Global
As companies around the world strive to be more
environmentally-sustainable, polymer-using central banks are leading
the way by giving new life to old notes.
Comprehensive independent environmental studies in Canada and England found polymer substrate’s impact is up to 60% lower on the nine internationally-accepted measures of environmental pollution.
Central banks that use polymer banknote substrate have the option to recycle 100% of their banknotes. Remarkably, the recycling of polymer banknotes, according to the Bank of Canada’s calculations, carries a natural capital profit of C$219 per tonne.
Granulated polymer notes
After destruction of the used polymer notes at a secure facility, the shredded waste is transported to a recycling centre where it is fed via conveyor belt into a compounding extruder.
From flake to resin
The polymer flakes are heated and churned, creating a slowly melting resin that emits gases that are vented off. It is at this stage that inks are either vaporised or become part of a the molten compound.
Gaining purity
The molten resin is thoroughly mixed and then passed through filters to remove any non-molten impurities to ensure a high-quality compound.
Pellet Formation
The mixture is then pushed through a water-cooled dye that creates thin strands that are cut to create small pellets. The water is drained from the pellets which are then dried and quality checked.
Figure 1: The recycling process
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Guardian® Global Recycling Program
The main reason polymer banknote waste is
not recycled universally is that in some smaller
countries there is either no suitable recycler
available, or the volumes are not economically
attractive to the recycler.
The Guardian® Global Recycling Program
addresses this issue by establishing a network of
regional recycling facilities in major geographical
regions around the world. These are large
recycling companies that have the capability
to source and ship polymer waste material
from other countries for recycling at their base
of operations. Thus, for any central bank or
banknote printer there are now two options:
• If a suitable recycler can be identified within
the country, and the volumes are suitable, it
will be possible to establish recycling locally.
• If there is no suitable recycler within the
country, or the volumes are too small, an
offshore recycling process is put in place.
PolyTeQ Services, Innovia Security’s technical
services division, provides support to the central
bank and/or banknote printer to identify suitable
recyclers locally or regionally, to facilitate the
recycling process.
The recycling process
As part of the preparation process, the recycling
company requires the destruction of the polymer
material to be performed separately to the
granulation of paper-based banknotes in order
to maintain a pure polymer mix. For central
banks using polymer for its whole note family,
this is not an issue. For those banks that are co-
circulating paper and polymer, this requires the
installation of separate ducting and bags in high-
speed processing equipment (see page 9).
Thanks to the leadership of central banks such as
the Reserve Bank of Australia and its subsidiary,
Note Printing Australia, who have recycled 100%
of their Guardian® banknotes for two decades,
recyclers around the world have identified a set
of essential requirements for best results.
These include a thorough mix of banknote
polymer with other polypropylene in the same
process batch to ensure a uniform blend of
recycled polymer material. Another requirement
is the removal of moisture adsorbed by inks,
which can cause the formation of bubbles
and holes in the final recycled material which
is delivered in the form of pellets. Other
requirements such as temperature control also
ensure the strength and integrity of the recycled
plastic product.
In the case of Guardian® polymer, the banknotes
are generally composed of 70% polypropylene
by weight, with the remainder made up of
various inks, coatings and other contaminants
gathered during note circulation. Today, recycled
polymer extruder technology has advanced to
the point where a sophisticated extruder can
handle 100% granulated polymer banknotes.
For the older, less-sophisticated extruders, the
recycled polymer notes need to be premixed
with either virgin polypropylene or other
recyclable materials. Recycling companies need
to determine the right material mix for recycling
and the suitability of the available extruder.
The recycling of polymer-based banknotes
is becoming increasingly attractive to
environmentally-friendly governments and
issuing authorities. To date, eight of the 24
nations using Guardian® polymer recycle their
banknotes. Three central banks are ready to
commence their recycling program once they
achieve the required volume, and all the other
central banks involved are investigating full
recycling. Security printers have also taken
advantage of recycling polymer substrate to
recover the cost of spoilage. To date, five security
printers who are actively printing on Guardian®
are recycling.
Polymer banknote technology and a co-ordinated
global recycling program assist central banks to
comply with world trends in the efficient use of
resources and waste reduction.
The relative simplicity of recycling polymer notes
presents an opportunity for governments to lead
their communities by example when it comes to
environmental stewardship.
POLYMER RECYCLING IN THE SPOTLIGHT: PRODUCOL
Operating in Costa Rica since 2002, PRODUCOL specialises in the manufacture of ‘plastic wood’, made from recycled plastic.
Committed to supporting the environment, PRODUCOL employs sustainable development to produce tables, beams, poles and panel sheets from 100%-recycled and recyclable plastic.
The materials are used to replace wood in the manufacture of pallets, weatherproof and cold-room furniture (such as tables, benches, drawers and chairs), fences and gates, playgrounds, rubbish bins, plant pots, animal feeders, fences, decks, bridges, trails, docks and in the construction of walls, floors and trusses.
Through the sustainable manufacture of these products, PRODUCOL promotes a triple environmental benefit:
1. Reducing pollution impacts by recovering plastic at the end of its useful life.
2. Protecting nature by avoiding the indiscriminate felling of trees.
3. Addressing the problem of non-biodegradable plastics by producing products with a very long lifespan, avoiding the generation of waste.
KEEP IT SEPARATED
To enable the recycling of polymer banknote
waste, there must be separation of paper and
polymer to avoid contamination. Some central
banks have dedicated processing systems and
high speed note sorting (HSNS) machines
to ensure there is no cross contamination.
Others want the flexibility to process either
paper or polymer banknotes on the same
HSNS machines using on-line destruction.
To facilitate the separation and collection of paper and polymer waste, modification to the waste transport infrastructure is required. The following is a schematic of how this might be achieved using a ‘Y’ Valve concept at the destruction unit exit for on-line destruction and a similar concept for off-line destruction.
Waste is then captured in the appropriate storage containers and, in the case of polymer,
is then despatched to a recycler for processing
into resin.
PolyTeQ Services works closely with central
banks to facilitate the establishment of
recycling arrangements, which includes advice
on the most appropriate way to separate
co-processed waste.
To date, eight of the 24 nations using Guardian® polymer recycle their banknotes.
No Activity
In Dialogue
Assessing Options
Testing/Developing
Recycling Imminent
Recycling
Figure 2: Central banks and printers using polymer and their approach to recycling
Printers Central banks
Various applications
for recycled polymer,
produced by PRODUCOL
Left: Prefabricated
housing components
Centre: Plastic wood
decking
Right: Walkway and
bridge
BEST PRACTICE
High speed note sorter Disintegrator
Granulated
paper
banknote
waste
Granulated
polymer
banknote
waste
Valve
Standalone disintegrator
Granulated
paper
banknote
waste
Granulated
polymer
banknote
waste
Valve
16.5% 21.0%
16.5% 8.5%41.5%
33.0%
8.5%25.0%
8.5%
12.5%
8.5%
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The energy consumption for online shredding is approximately 2.0kW for up to 150kg/hour.
Kusters: We offer different equipment, with capacities ranging from 50 to 1500kg/hr. Limiting factors are the size of the package in relation to the required capacity as well as the available space (especially in old buildings).
What is considered best handling practice in order to maximise the efficiency of offline shredding?
Kusters: Besides the two-stage destruction process we offer, the efficiency is greatly influenced by the bank’s loading procedure. In other words, the preparation of the batches. Once the unfit notes are locked up inside the system, the whole process is fully automated and cannot be influenced any more.
Is the shredding of polymer banknotes any different from the shredding of paper banknotes? If so, how do you handle this difference?
G&D: The online shredding of polymer notes is more challenging for several reasons. First, the polymer substrate, due to its initial tear resistance, requires a higher sharpness of the cutting blades, and hence, more frequent re-sharpening (typically after 20 million polymer banknotes versus 50 million paper banknotes) is necessary. Second, the cleaning of the extractors may be required more often, but this depends on the amount of sticky-tape residue and whether it is mixed with paper substrate. Paper notes generally exert a self-cleaning effect of the shredder blades and the extractors.
Kusters: It certainly is, but we have plenty of experience in this matter, so there are no surprises. We use basically the same equipment for both substrates. However, for each substrate we use knives that differ in size, shape and material. As you will understand, the details of our technology are “the tricks of the trade” and hence, we cannot reveal too much.
A central bank, based on its environmental policy, makes its own decision whether to destroy only pure material (ie. only polymer or paper) or any mix of both substrates. Whatever is needed, Kusters Engineering can offer a suitable solution for the destruction as well as the shred handling.
Can you share any data on shredding rates of paper versus polymer?
Kusters: The destruction efficiency of polymer is about 10-20% higher. The cut of the polymer is cleaner, with a sharp edge, whereas the cut of paper is more fluffy due to the fibres. Also, polymer produces less dust compared to paper.
Paper can be compacted much more. The compacting ratio of paper is about 1:5, whereas it is about 1:2 with polymer. Let me explain: the waste of one cubic metre of loose polymer shred weighs about 125-150kg, and about 250-300kg when it is compacted. Paper weighs about 100-120kg when it is loose, and about 500-600kg when it is compacted.
Since polymer cannot be compacted as much as paper, some central banks do not compact polymer shred. Also, some recyclers prefer to receive the polymer shred loose, but they also accept briquettes.
G&D: The shred rate is primarily a question of the central bank policy, with the return frequency and the fitness standard as the dominant parameters. A central bank with “delegated style” may have an unfit rate of 100% because it only accepts deposits with unfit notes. A central bank with a high return frequency, applying a “controlled” or “co-operative” style, may see an unfit rate below 5%. This data does not support lifetime calculations without further analysing the complete cash circulation and conditions thereof.
The overall lifetime of polymer notes in circulation is often stretched too far, as most commercial processing systems have limited capabilities to detect ink-wear, the primary reason for unfit polymer notes. Therefore, polymer notes are often returned after having reached a progressed unfit stage, very often only after tears had been repaired with adhesive tapes and the mechanical defects have become obvious.
How is the shredded material delivered to a recycler? How does this differ from preparing material for landfill or waste-to-energy?
Kusters: The physical proportions of the shredded waste, on its way to an end-user, be it a recycler, landfill, incinerator, etc., are the result of the consideration of various factors. It is important to know in what condition the end-user can receive and handle the waste, the costs of transport, etc.
As no country is the same, these considerations must be made by each individual customer before deciding how the waste should be when leaving the shredding system. Briquetting lowers costs of transport but if a recycler cannot handle briquettes, compacting is not wanted as it reduces the options for recycling. Each and every project therefore has its own possibilities and limitations to consider.
G&D: The BPS delivers shreds to be removed by an external suction and shred collection system. The central bank specifies the further handling of shred materials, ie. recycling and/or waste-to-energy conversion requiring compacting.
Quite often we see shreds sold as souvenirs of destroyed money. The shred fragments may appear like a complex puzzle – but so far nobody has recombined a genuine note and used it for payments. There’s no risk for the central bank, even when exploring a large landfill.
About the companies:
Kusters
Royal Dutch Kusters Engineering was founded in 1911 and specialises in the development and manufacture of disintegration equipment for banknotes and coins.
G&D
Giesecke & Devrient is a leading manufacturer of banknote processing systems. The company has experience in online shredding that goes back to 1986, when the first BPS ISS 300 PS with an online shredding unit was installed.
INDUSTRY INTERVIEW
What are a central bank’s considerations when they think about investing in an online shredding unit on a Banknote Processing (BPS) machine, or in offline shredding equipment?
G&D: If a central bank decides to invest in a BPS, be it a new installation or the replacement of an old machine, the question of whether to include an online shredding unit on the new BPS is almost a “no-brainer”, given the relatively low additional cost of this unit, compared to the total investment for the BPS.
Very important aspects for the central banks are the uncompromised security during the online destruction process, and the precise and infallible documentation on the banknotes sorted out as unfit and their subsequent destruction.
Kusters: One very important matter when central banks evaluate shredding solutions for banknotes is the guaranteed size of the shreds. Central banks often demand a guarantee that no shred exceeds a maximum size, e.g. 6x6mm. Kusters Engineering is able to guarantee any required shred size due to the applied patented technology of shredding and granulating using a screen at the outlet of the final stage of destruction. Not a single particle larger than the holes in a specific screen can pass this Kusters Engineering classifying stage.
How many BPS machines running at central banks are equipped with a shredding unit, versus without a shredding unit?
G&D: In the past few years, 100% of the new BPS M7 machines for central banks have been equipped (and are used) with online shredders. In some countries, very small branches may use compact banknote processing systems without online shredders (ie. the BPS C4 or Numeron), and send the unfit notes to a large cash processing centre for reprocessing and destruction.
Meanwhile, compact processing systems are available for online shredding in smaller branches, e.g. BPS C4-S.
Some countries operating on a low automation level in the cash cycle only use manual verification combined with offline destruction, or, in some cases even incineration, for the lower denominations.
Is there a minimum shredding volume per annum to make shredding economic?
Kusters: No, there is not. As soon as there is a need for the secure destruction of unfit banknotes, the economics of the process are not considered of critical importance.
What are the key challenges when it comes to shredding polymer banknotes and the subsequent compacting of the shreds?
Kusters: Firstly, the applied destruction technology must make sure that, after shredding, reconstruction of a banknote is impossible. One way to make sure of that is, apart from the shred size, to mix pieces of shredded banknotes in the waste collection.
Secondly, to set up the equipment in the available space inside the designated areas in existing (sometimes old) buildings represents a challenge that can, however, be solved most of the time by Kusters Engineering.
G&D: The online shredding of polymer notes is rather challenging, as damaged polymer banknotes are often repaired with tape. The tape residue can clog the blades and extractors with
sticky substances, thus requiring more frequent
cleaning.
The compacting of the shreds is part of the
external shred removal system, rather than the
BPS.
What solutions do you propose to resolve those challenges?
Kusters: As an engineering and manufacturing
company, developing currency disintegration
systems (both for banknotes and coins) is our
core competency and as such we never walk
away from any challenge.
G&D: G&D is offering a specifically optimised
version of shredder blades and extractors
(based on material with the highest durability
and optimised shape) for polymer banknotes
to reduce the effort for cleaning and/or
re-sharpening.
What is the shredding capacity of your equipment?
G&D: The shredding capacity of the BPS
supports continuous 100% shred rate at full
speed (up to 158,400 notes per hour for G&D
machines). With the precision of the BPS
shredder blades and a typical shred size of 1.5x16
mm, there is no risk of overheating or any other
limitation, independent from the substrate.
The disposal of polymer banknotes unfit for circulation is the final, yet important phase in a banknote’s
lifecycle. In our Industry Interview, we have a look at the destruction of polymer banknotes. Angelo
Kok, Chief Commercial Officer at Royal Dutch Kusters Engineering, and Alfred Schmidt, Product
Management Director at banknote producer Giesecke & Devrient, responded to our questions.
G&D and Kusters: Expertise at the Razor’s Edge
Alfred Schmidt Giesecke & Devrient
Angelo Kok Kusters Engineering
The shredding blades Different blades may be used for shredding polymer versus paper to ensure optimal flow-through of the banknotes.
12
Announcing the Guardian® Global Recycling Program It’s turning the Banknote Industry Green!
The environmental benefits of Guardian® polymer substrate
are already well known. Independent studies prove that
Guardian® reduces a central bank’s environmental impact by
up to 60% in the production and distribution of its banknotes.
But there’s so much more. Polymer banknotes are 100%
recyclable, and today central banks are taking full advantage of this
fact to strengthen their environmental credentials even further.
Participation rates are already impressive, and the enthusiasm
is growing. To date, a third of all Guardian® polymer-using
nations are actively recycling their banknotes, with more banks
ready to recycle as soon as sufficient volumes of used notes
accumulate.
In fact, every central bank that uses Guardian® has made
progress toward establishing a recycling program.
Let’s start thinking about tomorrow. Switch to Guardian® and gain access to a worldwide banknote recycling program that gives old notes a new lease on life… for the long term.
To find out more about the Guardian® Global Recycling Program, contact Chris Catlin at PolyTeQ Services.
T +61 8 8336 5589E [email protected]
13
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The Nicaraguan Experience
15
SPECIMEN EXCLUSIVE
In an exclusive interview with SPECIMEN,
Oknan Bello, Treasurer, and Felix Davila, Head
of Vault at the Central Bank of Nicaragua,
talk about the impact Guardian® polymer
technology has had on the Nicaraguan society
and its monetary system, more than six years
after its implementation.
Head of Vault Mr. Felix Davila (left) and Treasurer Mr. Oknan Bello (right).
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What were the biggest challenges presented when introducing polymer banknotes into the monetary system?
When the new polymer banknotes began
circulating, the central bank focused on
reinforcing the fact the new notes were more
durable, safer and cleaner.
The challenge was to adapt to a new material,
as polymer is, for its classification. The CIT
companies had comments on the new material,
for example, that it stuck to machines or that
the ink came off during the classification. This
was a matter of adapting to change and achieve
growth in this learning curve.
One of the main advantages we found in
using polymer instead of paper is a significant
reduction in material moisture levels. This helps
in its classification since the polymer substrate
is less wet than paper, thus gathers less dust
and is a more rigid material.
A disadvantage of the polymer is its memory
for folds, as this can cause jams in sorting
machines. However, they have already been
adapted and there are few problems in this
regard. Additionally, all the operations of
commercial banks have adapted very fast.
In general, the population has also become
used to the polymer material. However, there
is still the challenge of public education in
security measures both in polymer substrate
and in paper, as well as the care and use of
these materials. In this regard, the central bank
provides ongoing training to key stakeholders
such as commercial banks and retail groups,
and shows educational materials on banknote
handling, security feature recognition, and such,
which are displayed through the bank’s website.
Despite this, the general public is not very
interested in this material. People primarily visit
our website to check the exchange rate and other
economic issues.
We know that the central bank has the capacity
to recycle polymer substrate banknotes at the
end of their useful life. Why was this developed?
The bank had always intended to work with a
recycling program to reduce our impact on the
environment. As for the polymer substrate, we
also wanted to take advantage of reusing plastic
for other purposes. When using paper notes,
this was not possible and we had to incinerate
it, which pollutes the environment. Currently
polymer banknotes are shredded and shipped
to Mexico for recycling, since we have not been
able to identify a company dedicated to recycling
this material in Nicaragua. However, we are
working with Innovia Security to find other viable
options for recycling polymer banknotes.
We have been able to prove the ecological and
cash management benefits offered by polymer
banknotes, which contribute to a reduced
environmental impact and improved public
hygiene, as well as greater convenience in
banknote handling by the population.
In 2009, Banco Central de Nicaragua (BCN) launched its first Guardian® polymer
banknotes, which made the Central American country one of the first in Latin America to
put polymer banknotes in circulation.
The transition was decisive. As the most commonly used denominations, Banco Central
de Nicaragua issued the 10 and 20 cordobas on polymer amid much public interest.
A few weeks later, the central bank began circulating the instantly-recognisable 200
cordobas.
Why did the bank introduce Guardian® in 2009?
Our main concern was the durability of the banknotes, then their security, and then their cleanliness. Although our assessments reflected that polymer banknotes are very difficult to counterfeit, this attribute was not the main thing for us; it was durability. In terms of counterfeit banknotes, Nicaragua remains within the normal range compared to the average for Latin America and global levels.
The lower denominations tend to circulate at greater rates. When we only had paper money, those notes were lasting a very short time and were returned to the central bank very battered and dirty.
Following their introduction, polymer banknotes
have proven more durable and are kept in better condition for longer than paper notes. As we observed that polymer substrate is more durable, it was decided to increase the number of polymer banknotes in our new family.
All small-denomination paper banknotes will be replaced with polymer ones.
How is the behaviour of polymer banknotes in circulation? Has it met your expectations?
In terms of durability it has fulfilled them. Compared to paper banknotes, polymer has greater wear resistance, especially in the lower denominations.
An important aspect of polymer banknotes is that this material is slippery by nature, so it
was decided to add transparent Intaglio ink to them. Coloured Intaglio ink was initially tested, but it wore out very quickly and erased the image where applied. When using transparent Intaglio ink, the banknote’s tactile features can be perceived more clearly and the image is less prone to being deleted.
Having said that, we are still to undertake a specific survey about the public perception of polymer banknotes.
Could you describe the physical environment in Nicaragua, where the banknotes are used?
Nicaragua’s temperature varies throughout the year and the weather tends to be wet during the rainy season, causing paper banknotes to stick in the reader sorter, which does not happen with the polymer substrate.
In general, the public is less careful with lower-denomination banknotes than with the higher ones. For instance, the 200 cordobas banknote returns less ripped than the 20 and 10 notes, which tend to be abused and stapled by people. This is because, normally, banknotes of these denominations make up workers’ wages, so they are often stapled together.
“Nicaragua’s temperature varies throughout the year
and the weather tends to be wet during the rainy
season, causing paper banknotes to stick in the reader
sorter, which does not happen with the polymer
substrate.”
The bank had always intended
to work with a recycling program
to reduce our impact on the
environment. As for the polymer
substrate, we also wanted to
take advantage of reusing plastic
for other purposes.
SPECIMEN EXCLUSIVE
Mr. Oknan Bello Treasurer Mr. Felix Davila Head of Vault
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SPECIMEN: ISSUE 5FEATURE STORY
Evolution Becomes Revolution
The invention of the clear window was a
breakthrough moment in banknote security
history. First appearing on the 1988 Australian
bicentennial $10 note, the feature was a major
innovation in banknote security and has remained
the trademark feature on more than 40 billion
Guardian® banknotes printed since that time.
Design innovation has driven a range of
changes in the appearance and functionality
of the window, with major design initiatives
introducing new ‘generations’ of the window
design. The accumulated effect over the last 27
years is nothing short of startling – a revolution
in complexity and design mastery that remains
focused on the original objective of the first
window: to eliminate counterfeits.
1 2 3 4 5 6
T H E H I S T O R Y A N D E V O L U T I O N
O F T H E G U A R D I A N ® P O LY M E R
W I N D O W
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2By 2004 notes were being
designed with greater
window complexity, as
seen in this mosque
vignette and shadow
image in the Malaysian
5-ringgit note.
3Also in 2004, the window
in the Brunei 100 dollar
included the feature Gold
Patch® wholly contained
in the window.
FEATURE STORY
How the world of banknotes changed forever
In 1968 the Reserve Bank of Australia, with the
help of CSIRO (Australia’s national science
agency) began work on alternative substrates
and determined that polymer offered a more
formidable obstacle to the counterfeiter. It also
gave the opportunity to introduce a clear window
into banknote design, which would pose an even
greater challenge.
Following several years of extensive research and
development, Australia began the transition to
Guardian® polymer in 1988 with the release of
the $10 bicentennial commemorative banknote.
Polymer and the clear window had begun its
journey into history.
The arrival of the clear window had an
immediate and dramatic effect on reducing
counterfeits in Australia and proved an instant
hit with the public. It was a radical development
in the way many banknotes would be produced
in the future. As an integral part of the note and
not simply an ‘add-on’ feature, the window can
be viewed from both sides of the note offering
an excellent and easily identifiable overt security
feature for the general public.
The instant success of the technology prompted
the RBA to progressively convert all its
denominations onto Guardian®, culminating in
the full series being converted by 1996. The new
technology was closely observed by many other
central bank governors who began to see the
benefits and would later convert their own notes
to Guardian®. Polymer and its unique window
technology proved a momentous turning point
in the design and production of banknotes.
The windows in the first Australian series
on Guardian® were simple one-dimensional
window shapes with an integral flat vignette
such as the stylised gum tree on the $5 note and
the windmill on the $10.
From the outset, however, the technology
of creating more complex windows steadily
improved and the latest development of Innovia
Security’s directly-imaged LATITUDE® feature
moves Guardian® into the sixth generation of
clear-window technology.
1The arrival of the
clear window had an
immediate and dramatic
effect on reducing
counterfeits in Australia
and proved an instant hit
with the public.
Other countries take Australia’s lead
In 1996 Brunei elected to issue its one, five and
10-ringgit notes on Guardian® substrate. The
initial window designs were simple in content
and similar to those in the first Australian series.
In 2004 the 50 and 100-ringgit notes were each
designed with greater window complexity and
with two individual window designs on each
note.
In 1996 Thailand converted its 50-baht note
onto Guardian® and introduced the first full
tonal portrait as a window vignette. This would
become a feature of many later designs, such as
the 1,000-colones note for Costa Rica and the
5,000-pesos note for Chile.
In 1998 a gold Optically Variable Device (OVD)
was applied to the window of Malaysia’s
50-ringgit. As with the Australian bicentennial
note, the image could be viewed from both
sides of the note, effectively doubling its security
value.
More sophisticated by the year
Over time the window shapes and designs,
as well as the integral window vignettes, have
become far more sophisticated in order to
deter forgeries and to avoid any possibility of
cutting-and-pasting clear film onto paper copies
(a weakness of the early Australian designs).
Many Guardian® designs now carry more than
one window for the same reason. Security
features such as ‘G-Switch®’ and AURORA® are
The instant success of the technology prompted
the RBA to progressively convert all its
denominations onto Guardian®, culminating in the
full series being converted by 1996.
Many Guardian® designs now carry more than one
window for additional security…
In 1968 the Reserve Bank of Australia, with the help of CSIRO
(Australia’s national science agency) began work on alternative
substrates and determined that polymer offered a more formidable
obstacle to the counterfeiter.
In 1996 Thailand converted its 50-baht note onto Guardian® and introduced the first full tonal portrait as a window vignette. This would become a feature of many later designs, such as the 1,000-colones note for Costa Rica and the 5,000-pesos note for Chile.
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4In 2009, the dynamic
colour-switching
feature G-Switch® was
incorporated into a
complex vignette on the
Nicaraguan 200 cordoba.
The vignette also
incorporated a shadow
image as an early example
of design integration.
5The Canadian Polymer
Series broke new design
boundaries with the
development of the
frameless window and
a large edge-to-edge
window containing an
optically variable device.
In addition, a frosted
secondary window in
the shape of a maple
leaf contains a diffractive
optical effect.
commonly included in window designs as they
offer additional security in the form of public
recognition features.
Clear windows have the ability to be permanently
embossed using ‘blind Intaglio’ (an un-inked
area of the Intaglio printing plate). Unlike paper,
when polymer is distorted by the embossing
process, the result becomes a permanent feature
of the design, unaffected by normal wear or
moisture absorption.
Shadow images are the polymer equivalent
of watermarks in paper. They are a standard
feature of Guardian® and on early designs
appeared independent of the window, but in
2001 the Solomon Islands issued a 2-tala note
where an eagle-head image was designed to be
part shadow image and part window vignette.
This created a smooth transition from the
opaque substrate into a clear window, offering
more resistance to counterfeiting. It’s a feature
common in many later designs.
More countries follow suit as innovation increases
In 2000 an early attempt at creating a metameric
lens feature as a window was designed for the
10-reais note for Brazil. It was the first attempt
at self-verification: if the note was folded in
half the red lens in the window revealed the
denomination 10 disguised in another printed
part of the note. The lens was also embossed
with a 10.
Also in 2000, Northern Bank in the UK issued a
commemorative millennium £5 polymer note,
with several unique features. The design had
four individual clear windows, one of which
was multi-coloured. It was also the first note
to be designed with two edge windows and a
multi-directional text thread pattern. The note
also demonstrated the superior print quality of
Guardian® over paper, with micro text and ultra-
fine line pattern work in the print design.
In 2000 Romania also issued a commemorative
millennium banknote which carried two
windows, one with a coloured tint and one with
the DOE® (Diffractive Optical Element) feature.
The DOE® was the forerunner to the new and
much improved ECLIPSE® feature. Romania
followed its commemorative note with a new
series of banknotes – all on Guardian® polymer.
...as seen in this early
example of the Singaporean
10 dollar (2004).
FEATURE STORY
24
FEATURE STORY
SPECIMEN magazine – now an experience!The fully-interactive version is now available on iPad and Android tablets.
Look for Guardian Publications on the iPad App Store or Google Play.
6In 2014, the Polish
20 zloty took design
integration in and around
the window area to a new
level, with three features
– LATITUDE®, AURORA®
and METALIX® – woven
together in a single visual
narrative.
Following the success of its 20-peso note,
Mexico converted its 50-peso note to Guardian®
in 2006. It featured a clear window carrying an
emboss and one half-window with a two-colour
‘G-Switch®’ feature. The 50-peso was further
upgraded in 2012 by the introduction of a
large and more complex split window carrying
an emboss, multi-coloured substrate and the
ECLIPSE® feature. The design also incorporated
a feature using SICPA’s SPARK® ink.
A new era in polymer design and features
A new series of Guardian® notes for Canada
was unveiled in 2011, and signalled a new era
in polymer banknote design and features. The
notes have a large and complex clear window
running almost top to bottom of the note,
carrying a de-metallised OVD with three-
dimensional vignettes running through it, a
multi-directional emboss and offset overprinting
to the edges of the window. There is also a
second window with a maple leaf carrying the
ECLIPSE® feature.
In 2014 the Polish 20-zloty Guardian® banknote
was introduced. The design carries a large
clear window with three of Innovia’s unique
security features: LATITUDE® in the form of
an embedded OVD image of the Belvedere
Palace visible on both sides of the note,
AURORA® colour-shifting inks in the shape of
the denomination and a group of tree leaves.
METALIX® metallic ink forms a wavy banner
design.
LATITUDE® marks a significant improvement
in the way OVDs are designed on a note. The
feature is not stamped in the traditional way with
the application of a separately-manufactured foil;
rather, it is generated directly into the substrate
surface, making counterfeiting far more difficult.
Banknotes: Forever changed
The clear window in polymer has forever
changed the way we view our banknotes. The
technology of the clear window is here to stay
and designs of the future are set to become
more intricate, more secure and more thought-
provoking.
The clear window in polymer has forever changed the way we view
our banknotes. The technology of the clear window is here to stay
and designs of the future are set to become more intricate, more
secure and more thought-provoking.
Innovia Security - Commercial Services
T +61 3 9303 0700
www.innoviasecurity.com
