Use access key #2 to skip to page content.

catoismymotor (38.90)

Plastic Canadian Currency? Awesome!!!

Recs

6

June 22, 2011 – Comments (13) | RELATED TICKERS: CNI , SLW , BIP

Canada has come up with an idea that I think is awesome. They have adopted a method of making their notes from a plastic film. The video in link covers the benefits of making the change. I'm all for it. I congratulate the powers that be for making a smart decision.

http://www.theglobeandmail.com/news/politics/canadas-new-plastic-banknotes-will-be-nearly-impossible-to-fake/article2068559/

Maybe I'm too excited by this development. I'd enjoy reading some sober counter points to this idea, particularly from our Canadian Fools.

Cato

 

13 Comments – Post Your Own

#1) On June 22, 2011 at 10:16 AM, kdakota630 (29.81) wrote:

I saw this a couple of days ago on Yahoo.  When I read the headline it just sounded stupid, but then reading a bit more into it I thought it was a great idea.  They're supposed to be much harder to counterfeit as well.

They're starting with the $100 bills and then working their way towards smaller denominations.  I come across a lot of $100 in my line of work (drug dealer) so I'm looking forward to checking them out when they star circulating.

Report this comment
#2) On June 22, 2011 at 10:19 AM, Turfscape (40.96) wrote:

I'm still waiting for Americans to finally let go of the paper dollar bill (no this is not a fiat vs. gold statement). There is significant advantage to the "gold dollar" coin over paper dollar bills...and yet, we just can't let go of our 'foldin money'.

Report this comment
#3) On June 22, 2011 at 10:46 AM, catoismymotor (38.90) wrote:

Re #1

I thought you sell whey protein and herbal suppliments. What "drugs" do you deal my high rolling Canadian connection? :)

Cato

Jimmy 'Popeye' Doyle: If that's not a drop I'll open up a charge for you at Bloomingdale's.
Buddy "Cloudy" Russo: Make it Alexander's Toy Department.

Re #2:

I know. We've tried it a couple of times over the last thirty years. Maybe it is because the lobbyists in DC know adult dancers don't like them because they are too heavy to be secured by a garter belt.

The times I have been in the UK I've enjoyed their one pound coins. They are pretty and have some heft. Nothing against the subjects of our dollar coins from years past but I think if our coins were not so *meh* people would be more likely to adopt their use. Better attention to detail and variety of subject matter would be a good start.

 

Report this comment
#4) On June 22, 2011 at 11:10 AM, Schmacko (79.83) wrote:

@#2 I hate carrying coins around.  Canada uses $1 and $2 coins so any change from purchases results in lots of coins.  They make your pockets full and heavy and since they the $.25 through $2 piece aren't hugely different in size it was hard for me to just stick my hand in my pocket and pull out what I needed by feel.  Meaning I'd end up hauling out a big pile of coins and sorting through them for transactions.  It's slow and annoying.  Same experiece with the euro.

The reason coins don't catch on in America doesn't have anything to do with lobbyists it has to do with the fact that paper money is easier to store and use.  Ease of use trumps all.  We had a stamp machine in the building that only returned dollar coins as change and everyone here hated them and tried to get rid of them asap. 

Report this comment
#5) On June 22, 2011 at 11:22 AM, kdakota630 (29.81) wrote:

catoismymotor

Just a little joke since $100 bills are probably the most common bill carried by drug dealers and I do come in contact with a lot of $100 bills.  And no word of a lie, without leaving this screen after reading your reply I had a customer come in and pay for a $9.25 purchase with... get ready for it... a $100 bill!!!  And yesterday the same thing happened on a $5.50 purchase.

I emptied my wallet just before the weekend and I've already got six $100 bills in there again.

Report this comment
#6) On June 22, 2011 at 11:34 AM, Canuck2010 (< 20) wrote:

Franlky we've been able to adjust to using the $1 and $2 coins without too many problems. It's saved the government a lot of money since coins last much longer than bills.

I think the new plastic bills will go a long ways towards restoring faith in the higher value bills. Counterfitting has been such in both the US and Canada that many retails refuse to accept $50 and $100 bills.Plus the bills will last longer in circulation reducing the costs to government to replace worn out bills.

 

Report this comment
#7) On June 22, 2011 at 11:52 AM, kdakota630 (29.81) wrote:

I like the $1 and $2 coins.  I wouldn't mind a $5 coin, but anything larger than that would be a bit much.

Report this comment
#8) On June 22, 2011 at 1:16 PM, ChrisGraley (30.25) wrote:

If the US did this I would finally be able to stretch a dollar.

Report this comment
#9) On June 22, 2011 at 1:19 PM, Turfscape (40.96) wrote:

Schmako wrote:
"The reason coins don't catch on in America doesn't have anything to do with lobbyists it has to do with the fact that paper money is easier to store and use."

Bills are easier to use and store than coins? I would disagree. I find singles to be obnoxious. They are constantly worn out, torn, mangled and dirty. Vending machines reject them repeatedly. I find dollar coins to be easier to use. They are easy to identify by touch in my pocket...meaning I don't have to pull out my entire stock of cash to thumb through for singles.

 "Meaning I'd end up hauling out a big pile of coins and sorting through them for transactions."

Interesting...having spent significant time in the Eurozone, I've never had this problem. I found the 1 and 2 Euro coins to be extremely convenient.

But, you do illustrate the strong perception that is pervasive throughout America...which demonstrates exactly why the $1 coins aren't catching on (and, sadly, most likely won't for another two generations).

For me...I'm a mostly practical kind of guy. The $1 coins are more economical. They simply last longer, which reduces government costs. And I'm all for that.

Report this comment
#10) On June 22, 2011 at 3:40 PM, catoismymotor (38.90) wrote:

My lobbyist comment was meant to be tounge in cheek, not literal. Lobbyist have little or nothing to do with the printing of bills or stamping of coins.

Report this comment
#11) On June 22, 2011 at 6:14 PM, rfaramir (29.57) wrote:

If these were money substitutes (warehouse receipts for things of real value, like gold, silver, oil, copper, tobacco, etc.), this would be an interesting development. It would be the free market providing better service to the consumers of its products. But no, it's the government making a decision for all of us, whether we like it or not, forcing the use of a different form of currency which will cause some troubles and getting used to. (Will existing automated change machines recognize them? If not, will the government subsidize upgrades? If so, taxpayers suffer, if not, owners of such machines suffer.)

I'd be more concerned about the counterfeiting this hopes to reduce if the government weren't the biggest destroyer of the value of our currency. As it is, the government just doesn't like having competition.

The only positive I take away from this is the hope that 'plastic' notes will remind people that these are inherently valueless, 'fake' if you will, and have been all along, since we left the gold standard.

Report this comment
#12) On June 23, 2011 at 12:33 PM, Carioca58 (62.25) wrote:

Brazil adopted it for the R$10 bill in 2000, with the promise that it would last 4x as long as the paper bill, but it didn't catch.  Apparently the technology was from Australia.

I just googled and found:

Australia was the first to adopt in 1988.

HongKong adopted it in 2007 for the 10yuan bill.

India adopted it earlier this year for the 10 Rupees bill.

Dupont tried to market Tyvex as banknote material, but only Costa Rica and Haiti adopted it.

See wikipedia:  http://en.wikipedia.org/wiki/Polymer_banknote

Report this comment
#13) On June 23, 2011 at 1:11 PM, lemoneater (79.38) wrote:

@ #9 Your comment about the nuisance of using paper dollars brought back a memory. When I was in college (a small college with only five hundred students so I knew almost everyone by sight), I had a brief stint at "ironing" money. One semester my dorm room was on the ground floor not too far from a common area with snack machines with newly installed bill recognizers.

The bill recognizers demanded a perfectly crisp dollar bill to work. One poor guy was struggling to flatten his dollar and trying to coax the machine to take it without success. I asked to see his dollar, and he gave it to me. To his amazement, I took it and starting running to my room. (I think I yelled something about coming back). I rapidly pulled out an ironing board and had that bill pressed flat in a jiffy. I ran the freshly ironed bill back to the guy and it worked beautifully.    

Report this comment

Featured Broker Partners


Advertisement