Maldives Central Bank Turns Shredded Banknotes into Art and Souvenirs

The Maldives Monetary Authority (MMA) has launched two creative competitions inviting the public to transform shredded currency into souvenirs and artwork. The announcement has sparked public curiosity about what really happens to old and damaged banknotes in the Maldives.

More Than a Million Notes Destroyed Each Year

The MMA receives large volumes of worn and damaged banknotes every year from the public, businesses, and commercial banks. According to the MMA's 2025 Annual Report, the central bank shredded 938,033 banknotes in that year alone. Over the past two years combined, the total surpassed one million notes.

These are not notes in everyday circulation. They are banknotes that have deteriorated beyond acceptable use: faded or peeling ink, torn edges, burn damage, or notes so badly creased from handling that ATMs can no longer read them.

How Shredding Works

When damaged notes are brought to the MMA, the central bank first replaces them with valid currency. The damaged notes are then fed into a specialized currency quality-checking machine. The machine scans and assesses each note. Those that fall below the required standard are shredded immediately.

The shredded material from this process is what the MMA is now using in its competitions.

Destroying Currency is Illegal

The competitions prompted questions online. Some people asked whether deliberately shredding or tearing banknotes was permitted. The MMA has clarified that it does allow such activities. Damaging, shredding, or defacing currency is a criminal offense under Maldivian law. The shredded material used in the competitions comes exclusively from notes already destroyed through the MMA's official quality-control process. No new or usable notes are involved.

The Competitions

The MMA has opened two competition categories: souvenir design using shredded currency material and artwork created from shredded note fragments. Both categories offer cash prizes for first, second, and third place winners.

Participants must first register to enter. Shortlisted applicants will receive shredded currency material to develop their prototypes and final pieces. The registration deadline has been extended to 31 May 2026.