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I think the point of the story is really that whatever anyone's own opinions are on what is or is not acceptable, people shouldn't be forced to accept something like this when they can't avoid it.
Some people mounted little protests like 'we don't accept the fivers', but that won't last long as all the other notes are being replaced (the £10 note is a done deal, although the BoE are reconsidering over the £20 note, and it could be years, perhaps decades, before paper/plastic money is animal-free again), and while we (mercifully) are not all on electronic money only yet, I can completely understand why some people feel angry about it.
As the trace amounts are so tiny, it's hardly like introducing leather tickets on public transport, but aside from that it has the same logical structure. I don't think it's the biggest story of all time, either, but I find it interesting for that reason alone.
I don't have a problem with this, I'm not eating the money so I don't really care. It's hard to be 100% vegan what with animal products being in loads of everyday products... I love books, but I'm not going to email every publishing house around the world to see what their books are clued together with, and as long as my trainers aren't covered in leather or suede, that's good enough for me... it's easy to take things too far.