The BSP will start the testing of polymer PHP 1,000 banknotes in 2022.
BSP — The Bangko Sentral ng Pilipinas on Monday said that it will start the testing of polymer PHP 1,000 banknotes in 2022.
On Monday, the central bank said that it will start the testing of PHP 1,000 polymer banknotes in 2022, which will have a similar material used in countries such as Canada and Australia.
BSP Deputy Governor for Payments and Currency Management Mamerto Tangonan said in a virtual briefing that the Bangko Sentral ng Pilipinas planned to release “a few hundred million” pieces of the polymer PHP 1,000 banknote in 2022.
“It’s the one that is used the most by the people, and we want to see how the public will handle these new banknotes, and we want to see that it gives us a life that is at least two and a half times our existing cotton-abaca notes,” Tangonan said.
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GMA News Online reported that the polymer PHP 1,000 banknotes will have a similar design to the PHP 1,000 banknotes already in circulation, but the material will be like the banknotes used in countries such as Canada, Australia, New Zealand, Mexico, and the United Kingdom.
The central bank was pushing for the adoption of polymer-based banknotes as those were said to be more sustainable and environmentally friendly, more hygienic and sanitized, more cost-effective, and more durable.
In addition, the polymer banknotes will have additional security features which will make them difficult to counterfeit.
The @BangkoSentral will first hold a limited circulation test of P1,000 polymer banknotes, the most withdrawn denomination.
— Jon Viktor Cabuenas (@ViktorCabuenas) October 25, 2021
"It’s the one that is used the most by the people, and we want to see how the public will handle these new banknotes." pic.twitter.com/UNdiv76zIJ
Citing the experience of other countries, Tangonan said that polymer banknotes can withstand extreme temperatures and could also last 2.5 to 4 times longer than paper money.
Those were also more conducive to wet market conditions, water-resistant and dirt-resistant, and could also reduce production costs by 25 percent as well.
GMA News Online reported that the testing of the polymer banknotes was expected to start within the first six months of 2022. The testing period could take 3 years in order to see if the durability of the polymer banknotes could live up to 2.5 to 4 times longer than the paper money in circulation.
Should the test be successful, Tangonan said that it will be up to policymakers to decide whether to adopt polymer banknotes for all denominations moving forward based on the data gathered from the test.
However, the polymerization program had been opposed previously as those would have an impact on the local abaca industry, where the central bank sourced materials for the current banknotes in circulation.
Tangonan also said that this will have a “minimal” impact on the local industry as the test will only be for the PHP 1,000 denomination. This would translate to 0.2 percent to 0.4 percent hit on the farming jobs, and 0.1 percent to 0.2 percent to total abaca exports.
The central bank had already conducted consultations with different polymer banknote producers and other central banks on their actual experiences with polymer banknotes.
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