In 1989, Canada replaced the one-dollar note with a coin, nicknamed the “loonie”. In 1996 the widely circulated two-dollar note was replaced with a coin, nicknamed the “toonie”. The remaining paper notes are being replaced with polymer notes in 2011 – 2013. The polymer hundred was introduced in 2011 without major incident, and this week the polymer 50 entered circulation, with the 20’s, 10’s, and 5’s scheduled over the next 18 months. Meanwhile the United States still has a widely circulated paper dollar, and a paper two that is narrowly circulated. The new mutil-coloured hundred is about two years behind schedule, and a hundred billion dollars worth of notes may have to be destroyed because of defects in the manufacturing process. And then there's the hundred million or so dollar coins sitting in storage at the US mint because dollar notes continue to be favoured over coins. Today in related news, the Canadian government announced that the one-cent coin will cease production by the end of 2012. Considering how much Canadians and Americans have in common, does anyone else find it interesting that Canadian money - notes and coins - have been continuously modified without great drama, while US notes and coins seem to follow a more “traditional” style and usage? I’m not suggesting one is better than the other... just remarking on the number of differences in approach.
I do not have a plausible answer, but I can comment on the comparison. Although Canada and the US are neighbors, the monetary differences are like night and day. The United States dollar is the standard of the world, and often conterfeited, while Canadian coins/currency are seldom seen outside of Canada and the bordering states. The new US $100 note is complicated and uses many anti-conterfeiting designs, and it seems that most Americans just aren't ready to give up paper money in lieu of coins. What the US decides, concerning monetary designs, affects a lot more people than Canadian money, so Americans are involved in more research before changes are made......which takes time.
I think the anti-counterfeiting features on the Canadian polymer notes are far superior to what can be done with paper money. As long as counterfeit paper notes are close enough to the real deal, they will circulate unless they are check closely. The fact that polymer notes are plastic, just the technology required to counterfeit them would prevent them from being counterfeited. http://www.theglobeandmail.com/report-on-business/economy/currencies/graphic-security-features-on-canadas-new-100-polymer-bill/article2258766/
I agree that the US dollar's role as a global currency adds complexity. The cost of educating the world about the new hundred dollar note cannot be dismissed. In addition, the technology used in the US hundred is unique to US currency, while the Canadian polymer solution uses technology first developed and deployed in Australia over 15 years ago, now used by over 20 nations. Maybe that's the cost of leadership..... a high price to pay.
