The Bank of Canada will begin introducing plastic banknotes using a polymer material by the end of next year. The Canadian federal government announced the plans during its annual budget speech, stating that it was “taking steps to modernize Canada’s currency and protect against counterfeiting”. 

Canadian money has been targeted by forgers in recent years, as the Canadian dollar has risen close to parity with the US dollar. Security measures that could be used include the additional of a clear window, holograms, iridescent ink, and metallic/reflective threads.

There are several additional benefits as well. The new bills are cheaper to produce and could last up to four times longer than traditional banknotes printed on cotton-fibers, making them friendlier to the environment. They are also cleaner, since there is less surface area for dirt, bacteria, and viruses to adhere to. Physical money is a common source of fecal contamination.

Tyvek-based plastic currency was first introduced in the 1980s, but Australia has since led the way with the development of polymer banknotes. The key ingredient is "biaxially oriented polypropylene", developed by Australian firm Securency.

The world's first polymer banknote was the commemorative $10 bill issued in January of 1988 to mark the Australian Bicentenary. Virtually all Australians were using plastic money by 1996. Numerous other countries have since adopted polymer-based banknotes as well, including Brazil, Chile, China, Indonesia, Israel, Malaysia, Mexico, and Singapore.

Canada’s $1 and $2 coins known as "loonies" and "toonies" will also be undergoing a redesign. The Royal Canadian Mint plans to introduce a new composition that uses lower-cost  “patented multi-ply plated steel technology.”