Smaller, wipe-clean plastic banknotes could be introduced by the Bank of England from 2016, matching currency across the world.
The new polymer notes stay cleaner, are more secure and should even survive a spell in the washing machine, the Bank says.
It has spent three years studying the impacts of a change from cotton paper.
The switch could start with the new £5 note, featuring Sir Winston Churchill, with the £10 note to follow.
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