MANILA, Philippines — The polymer version of the P1,000-denominated banknotes is scheduled to be circulated starting April 18, as the Bangko Sentral ng Pilipinas (BSP) aims to initially issue 10 million pieces as part of a limited circulation test for this year.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno, together with other members of the Monetary Board, presented Wednesday evening the new design of the plastic P1,000-denominated bills to President Duterte at Malacañang.
“My information is that this will be available on April 18,” Diokno said during his weekly virtual press conference.
The BSP is also drafting a memorandum of agreement (MOA) spelling out the guidelines for the issuance of the new polymer banknotes.
The agreement will cover matters such as polymer familiarization by client banks’ personnel, and calibration of existing cash processing machines, vending machines, automated teller machines, bills acceptors and other similar devices for compatibility with polymer banknotes.
Diokno said the P1,000-denominated polymer banknotes would initially be available through over-the-counter transactions in banks and would be circulated via ATMs in the next six months.
“I understand they (banks) need to reconfigure the ATMs. There will be competition among banks which can offer to bring the new bills in their ATM. So the six months is maximum,” Diokno said.
Last year, the BSP revived plans to use plastic or polymer for banknotes as they are more hygienic amid the COVID-19 pandemic, more environment-friendly as well as more durable and secure compared to the cotton and abaca fiber composite now being used.
It partnered with the Reserve Bank of Australia for the printing of the plastic banknotes through Note Printing Australia.
According to the BSP, the new P1,000-denominated polymer banknotes would be circulated alongside the current P1,000 paper banknotes and both can be used for payments.
“As the sole issuer of Philippine currency, and in line with best practices of central banks worldwide, the BSP periodically updates the material, design and security features of our banknotes to ensure that they promote public well-being, be durable enough for longer-term use, and incorporate the latest technology to prevent counterfeiting,” Diokno said.
The new banknote strengthens the BSP’s efforts to respond to pressing public health and safety concerns due to the COVID pandemic, promotes environmental sustainability and deters counterfeiting.
Polymer bills can be sanitized with less risk of damage, making them a more hygienic alternative to paper banknotes.
Scientific studies reviewed by the Department of Health also found that in temperatures typical of tropical climates, viruses and bacteria survive for shorter periods on polymer banknotes compared to paper banknotes.
According to studies conducted by other countries, polymer banknotes have a smaller carbon footprint as their production requires less water, energy, and other resources.
Some countries have reported that polymer banknotes last at least 2.5 times longer than paper banknotes, given their resistance to water, oil, dirt, and general wear and tear. Their extended lifespan makes polymer banknotes more cost- effective in the long run. They can also be recycled into other useful forms, such as compost bins, building components, furniture and other household products.
Using advanced technology, polymer banknotes make counterfeiting significantly more difficult and costly. More intricate designs and stronger security measures are in line with the BSP’s mandate of safeguarding the integrity of the Philippine currency.
The design of the P1,000-denominated polymer banknote features the Philippine Eagle and the Sampaguita on the obverse side; and the Tubbataha Reefs Natural Park, South Sea Pearl, and T’nalak weave design on the reverse side.
There was earlier criticism, however, over the removal of the country’s historical figures in the new P1,000-denominated polymer notes compared to the still in circulation P1,000-denominated paper banknotes.