SPARTAN™ is a new kind of polymer banknote that increases seigniorage, simplifies issuance, and provides an alternative to minting coins.
The cost and complexity of issuing currency in the lower denominations has long been a challenge for central banks. High transaction velocity means banknotes fatigue faster at the note/coin boundary, leading to high replacement and disposal costs. Until now, the only alternative has been moving to coins.
The problem is coins also come with high production and management costs. They suffer from issues with hoarding, poor public acceptance, and illegal smelting. On top of this, the process of producing a coin is more complex than re-designing a banknote, and extensive stakeholder consultation tends to add further costs.
SPARTAN has been engineered for the note/coin boundary. It delivers extreme durability at lower cost.
The results of independent laboratory testing have shown that SPARTAN is up to eight times more durable than cotton-paper banknotes. This will reduce production costs, since fewer banknotes are needed to replace unfit notes. That creates opportunities for central banks to maintain a denomination in banknote format – which is the preferred payment method for consumers and retailers.
Although the anticipated life cycle of SPARTAN is less than a coin, the initial outlay is significantly lower, and expected to maintain this cost advantage with time. A full cost-benefit analysis can be supplied as required.
SPARTAN also removes complexity for central banks by providing a single source of procurement. The entire banknote is produced by CCL Secure and delivered ready for issuance. Plus, SPARTAN has been designed to integrate easily into current cash management systems. They are compatible with existing banknote processing infrastructure, including machine-readable features for vending machines and equipment at the point of sale.
As the inefficiencies and expenses associated with coins continue to mount, SPARTAN offers a unique solution.