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hi viewers welcome to many facts which material is used for making paper money paper money is not really made from paper you are right it is made from cotton paper and cotton both are made from cellulose the ordinary paper that consumers use throughout their everyday life such as newspapers and books is primarily made of wood pulp paper maker made paper from lots of different kinds of cellulose such as tree fibers stem fibers and seed fibers that is cotton some cellulose fibers are very short and as a result dont make very strong paper which if used to make money would wear out very quickly using longer fibers such as cotton or linen would extend the life of the paper the indian paper money made up of pulp containing cotton and balsam with special dyes to make the currency notes that should be resilient durable with quality to resist from wear and tear and not to be faked easily us paper money is made up of 75 percentage of cotton and 25 percentage of linen with the security thread a