The central bank will issue the country’s first-ever polymer banknote in April next year and the design has already been approved by President Duterte, said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on Saturday, Dec. 11.
“It was designed by BSP and approved by the NHI (National Historical Institute),” said Diokno. “Its issuance has been approved by the Monetary Board and the Office of the President,” he also said.
Unlike other designs in the paper-based New Generation Currency (NGC) series, the polymer banknote will not feature historical figures such as national heroes, former presidents of the Philippines or other prominent political and cultural personalities.
“The new series will focus on fauna and flora in the Philippines. Those with positive Filipino images like tamaraw, sampaguita, etc.,” said Diokno.
When asked why there are no political or cultural leaders in the pastic banknotes, or why only the P1,000 bill are being delivered next year and not other denominations, the BSP chief said that “no such discussion went into the Monetary Board decision-making process”.
“(On) arguments why 1000-piso bill and not other denomination: first, it is the most in demand, hence the cost efficiency gain will be the highest; and second, it is also the subject of the highest attempted forgery — not that it is easy to forge,” said Diokno.
“In fact, it has the most security features and thus the most difficult to forge,” he added, referring to the highest-denominated banknote in the country.
While paper banknotes will still dominate the money in circulation, the BSP wanted to have a test run for polymer money to acquire significant feedback, and to determine the effect of polymer banknotes on currency handling as well as to attest its durability and lifespan.
The COVID-19 pandemic and concerns for sanitizing frequently touched objects including banknotes and coins is a key reason why the BSP has decided to source polymer money.
Polymer banknotes have low bacterial count compared to paper or cotton-based banknotes. Some central banks such the Reserve Bank of Australia have found out that polymer banknotes are safer than paper as it will not host viruses or bacteria. It is the Australian central bank that will print the polymer banknotes by April next year.
The BSP also wants an environmental-safe and recyclable banknotes. The more durable and water-resistant plastic money will have a smaller carbon footprint, lower water and energy usage, and less environmental toxicity, said the BSP.
Also, polymer banknotes will have lower production costs and since it will last longer, it will eventually improve in terms of cost savings. Another potential benefits of polymer banknotes is that it is harder to counterfeit because of its security features.