The central bank plans to circulate more polymer banknotes in different denominations such as 500-piso and 100-piso if the public will adapt well to the first batch of polymer 1,000-piso bills when these are issued in the second quarter this year.
“We’re only introducing a polymer version of 1,000-piso banknote this year (and) the shift to polymer on other denominations will be based on the result of the circulation of the 1,000-piso polymer banknotes,” said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.
“Should result of the circulation be positive, the proposal will be for a continued and more expanded use of polymer to include other denominations,” he added.
The polymer version of existing paper-based banknotes will have flora and fauna design. The 1,000-piso plastic money will have as centerpiece the Philippine eagle. The 1,000-piso paper banknote featuring Jose Abad Santos, Vicente Lim and Josefa Llanes Escoda will remain in circulation alongside with the new 1,000-piso polymer banknotes.
Diokno said they will carefully monitor how the public will cater to polymer banknotes. The BSP will assess the polymer money’s acceptability to Filipinos.
“(We will) validate weather the benefits reported by other countries using polymer banknotes will hold true for us. These benefits being polymer (as) more hygienic because it can be sanitized; environment-friendly because polymer can be recycled; more secure because polymer can carry more security features; and more cost-efficient because it has a longer life-span and reducing printing cost,” said the BSP chief.
The 1,000-piso banknote is the country’s largest denomination in general circulation and it is also the most widely-circulated banknote in the Philippines. As such, it has the highest number of counterfeiting attempts despite that it has the most number of security features and the hardest banknotes to forge, said Diokno.
While paper banknotes will still dominate the money in circulation, the BSP wanted to have a test run for polymer bills 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.
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.
The BSP originally announced that the first batch of polymer banknotes will be circulated by April this year.
The Reserve Bank of Australia will be in charge of the production of the new banknotes, through its subsidiary Note Printing Australia, which is known for its technology and expertise in the printing of polymer money since it is the first to issue a full series of polymer banknotes.