A recent competition launched by the Maldives Monetary Authority (MMA) has sparked curiosity online, with many questioning whether the central bank is legally shredding Maldivian currency to create artwork and souvenirs.
The competition, announced earlier this month, invites participants to design souvenirs and create artwork using shredded banknote particles as the primary material. Soon after the announcement, social media users began asking whether tearing or destroying currency is permitted under Maldivian law.
The short answer is no.
Destroying, tearing, shredding, defacing or damaging banknotes is strictly prohibited in the Maldives and is considered an offense. However, the shredded particles being used in the MMA’s competition are not produced by destroying usable currency notes.
Instead, they come from a long-established process used by the central bank to safely dispose of worn-out and unusable banknotes removed from circulation.
Every year, the MMA receives a large number of damaged notes from members of the public, commercial banks and businesses across the country. These include notes that are torn, faded, discolored, burnt, heavily creased or damaged to the point where ATM machines can no longer recognize them.
According to the MMA’s 2025 Annual Report, a total of 938,033 damaged banknotes were shredded during that year alone. Over the past two years, the number of unusable notes processed by the authority has exceeded one million.
When damaged notes are brought to the MMA, replacement notes are first issued to the customer. The worn currency is then passed through specialized banknote quality-checking machines.
These machines inspect the condition of every note. If the note is considered too damaged to safely return to circulation, the machine immediately shreds it as part of the disposal process.
The shredded particles produced through this system are now being reused as part of the MMA’s new sustainability-focused competition.
Under the initiative, participants must first register and submit proposals outlining their concepts. Shortlisted applicants will then receive shredded banknote material from the MMA through official procedures to create their final artwork or souvenir prototypes.
The competition includes two categories: souvenir design and artwork creation. Winners placing first, second and third in each category will receive cash prizes.
The MMA has also extended the registration deadline for the competition until May 31, 2026.
The initiative forms part of broader efforts by the central bank to promote recycling, sustainability and creative public engagement while also educating the public on how damaged currency is managed in the Maldives.
