Repurposing old banknotes through BFE^®

According to a recent study that took into account over a hundred currencies worldwide in the period 2013–2023, “the median growth rate by the number of banknotes in circulation has exceeded 4% during the whole period.” In simple terms, that means the number of banknotes in circulation in at least half of the countries considered grew at least 4% over that period.¹

As the author reminded us, “cash is the only payment option for a number of citizens in every country.”² Cash remains attractive, also as an alternative to digital means of payment. Its role as a store of value, particularly in times of stress and crisis, remains pivotal in maintaining stability. 

Clearly cash isn’t going anywhere. It is also true that there is an expense to producing it, and keeping the cash cycle functional and efficient. In recent times, the environmental effects and costs of the cash cycle have entered the conversation. Central banks and their partners are part of this discussion.

Since sustainability has become a crucial lens through which to study every part of the cash cycle, let’s see how it could play out as a banknote reaches the end of its life.

Sustainability and extraction

No matter how well a banknote is designed and produced, it will inevitably reach a stage when it is unfit. Historically, these unfit banknotes were destroyed, with an emphasis on secure destruction and disposal. 

A lack was identified in this process. Could something be extracted from the banknote when it reached the end of its road, rather than just destroying it and disposing of the remains?

“For years, we faced the same problem: using high-quality cotton fibers for banknotes and then discarding the leftover material,” said Alexander Tantscher, Director of Research and Development/Technology Substrates and Security Paper at G+D. “We were paying twice: once to source the fibers and again to dispose of them.” 

This was wasteful in both financial and environmental terms. An alternative was required that made financial sense, and that was sustainable as well. 

The commercial imperative for repurposing

The crucial insight was to join the idea of realizing some sort of value from unfit banknotes to G+D’s emphasis on sustainability in everything. Repurposing – that is, the utilization of something for a purpose or need other than its original intended use – was used as a guiding light. The banknotes in question were at their collective end-of-life, but if they could be repurposed in some way, then their use could be extended, and they wouldn’t merely be “waste.” 

“We must stop seeing banknotes as disposable and recognize their lasting value,” pointed out Ferdinand Storek, Head of Cash Life Cycle Solutions, Central Bank and Printworks, at G+D. In this view, a banknote’s utility doesn’t end when it is declared unfit. The still-valuable fiber from the banknote can be extracted and reused elsewhere. 

A banknote is a store of value, after all – in more ways than you might think.

Banknote fiber extraction points the way

G+D’s Banknote Fiber Extractor (BFE^®) is designed with the environment in mind. It operates in a dry manner, without needing water or chemicals, said Tantscher. This reduces the environmental impact of the process. 

Further, the fiber that is extracted is put to use in G+D’s own internal operations. “We’ve incorporated up to 30% BFE^® fibers into paperboard without compromising quality,” said Tantscher. “Our internal usage, creating cardboard in various formats for our G+D logistics and outbound shipping, demonstrates the practical application of BFE^® fibers in our supply chain.” 

BFE^® is proven, secure, and scalable. This has larger implications. BFE^® was a response and a solution to a G+D issue, one of production waste. But that issue exists everywhere cash is still in circulation. “Central banks worldwide are sitting on huge piles of unfit banknotes,” said Ann-Kathrin Röndigs, Group Vice President Sustainability at G+D. “These would normally be incinerated or dumped. BFE^® allows all those banknotes to be repurposed elsewhere.”

Everyone likes a happy ending, including central banks.

A lasting impact

“In the beginning, BFE^® was a purely technical challenge,” said Tantscher. “We were engineers trying to solve a waste issue. But as we progressed, something shifted. We began to see waste not as a by-product, but as raw potential.” 

In his view, BFE^® is more than just an efficiency: it is about responsibility to this earth we all inhabit and making a long-lasting positive impact. “There’s a sense of purpose now that goes beyond production metrics. We’re more collaborative, more curious, more willing to challenge conventional methods if it means making our processes more sustainable.”

Part of that is seeing opportunities in other fields. G+D’s success with BFE^® has inspired inquiries from entities in packaging and textiles – indeed, anyone with an interest in fiber reclamation. The idea of reclaiming high-value fibers without compromising quality is relevant across industries that deal with high-specification cotton or cellulose-based materials. “People are realizing that end-of-life doesn’t mean end-of-use,” said Tantscher. The technology may take time to adapt, but the potential is definitely there. Especially as others are beginning to see real-world uses for these reclaimed fibers.

The tangible success G+D has achieved in finding new life for old banknotes has been recognized within the industry. Papierfabrik Louisenthal GmbH (and its solution, BFE^®) won the newly instated Environmental Project award at High Security Printing (HSP) Latin America 2025.³

“It starts with a change of perspective,” stated Röndigs. “Once you see something not as a disposable commodity, but rather a resource with lasting value, then you can begin to pursue ways in which it can be reintegrated or repurposed. That is something we value at G+D.”

Published: 02/12/2025