The Bangko Sentral ng Pilipinas (BSP) has resumed its “Piso Caravan” currency exchange program which now includes helping the public to shift from cold cash to e-money.

The BSP on Tuesday, Jan. 17, has reiterated its call for Filipinos to replace their unfit banknotes and coins with digital cash.

The BSP describes “unfit banknotes” as money that are “soiled, limp, stained, or have faded print, obvious writings, or markings.” On the other hand, unfit coins are those with corrosion or markings, said the BSP.

The central bank’s “Piso Caravan” is part of its effort to encourage the public to preserve the integrity of local currency and promote digital payments which will expand the country’s financial inclusion.

It will also fasttrack the shift of at least 50 percent of all payment transactions into digital this year. As of end-2021, 30.1 percent of all payment transactions are digital.

The BSP has incorporated the advocacy to exchange cash to e-money in its Paleng-QR Ph program which was launched in June last year. The aim is to onboard market vendors and tricycle drivers via the digital platform using the QR technology as well as to promote account ownership using QR Ph.

After implementing Paleng-QR Ph in Baguio, Davao and more recently, in Tagbilaran, the BSP will be launching the program soon in Pasig, Naga and Lapu-Lapu.

BSP Governor Felipe M. Medalla earlier this month said a cash-lite economy continues to be BSP’s vision. However they also recognize the role of cash.

“Indeed, a big, big puzzle is in spite of all these technological changes, demand for cash - physical cash - keeps growing. Of course, the explanation is rather simple: as people cross from informal employment , like those employed in farming where kids get fed rather than get wages, as you transform the economy into something more modern, cash is actually gradually being introduced to those parts of the economy,” said Medalla.

To this end, despite BSP’s strong push for digital cash, they are also ensuring physical cash are available and are exchanging and replacing unfit bills “as quickly as possible.”

Medalla said that to preserve currency integrity, the BSP has strengthened its Clean Note and Coin Policy and the Coin Recirculation Program.

Under Republic Act No. 7653, as amended by RA 11211, the BSP will retire or destroy all banknotes and coins found to be unfit, mutilated, or demonetized, including seized counterfeits. This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services.

The BSP’s Clean Note and Coin Policy and Coin Recirculation Program and part of its regular advisories to remind the public that the willful defacement, mutilation, burning, or destruction of coins may be subject to imprisonment of up to five years plus a fine of P20,000.

Based on BSP Circular No. 829, issued in 2014, banks are required to submit suspicious banknotes to the BSP for further examination.