BSP urges gift givers to go digital

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is urging Filipinos to use digital money when sending e-aguinaldo to families and friends during the holiday season even as it assured the sufficient supply of fresh banknotes and coins amid the seasonal surge in currency demand.

For a safe and convenient alternative to cash, the BSP also encourages Filipinos to use digital money when sending gifts during the Christmas season.

In its bid to transform the country into a cash-lite from a cash-heavy economy, the central bank aims to convert 50 percent of total retail payments to electronic channels and increase the number of Filipinos with bank accounts to 70 percent by 2023 under its Digital Payments Transformation Roadmap.

With the COVID-19 pandemic serving as catalyst, the share of digital payments to total retail transactions increased to 30.3 percent in 2021 from about 20.1 percent in 2020.

Likewise, the number of banked Filipino adults almost doubled to 56 percent in 2021 from 29 percent in 2019.

Meanwhile, the BSP said that denominations with the highest demand during the holiday season are the P1,000, P100, and P50 banknotes as well as the P20, P1, and 25-centavo coins.

“Historical data show that the uptick in currency demand begins in October and continues until December of every year,” the BSP said in a statement.

In line with its broader efforts to promote efficient recirculation of fit currency, the BSP also advised the public to have their unfit banknotes and coins exchanged for fresh ones with their depository banks at no additional charge.

The central bank also encouraged the public to regularly use their coins in paying for goods and services.

“The BSP reminds the public of the proper handling of Philippine currency to prolong the lifespan of our banknotes and coins,” it said.

During a ceremony held in Malacañang last week, BSP Governor Felipe Medalla presented to Malacanang the new P1,000 polymer banknote bearing the signatures ofPresident Marcos and the central bank governor.

“The issuance of this new polymer banknote is smarter, cleaner, stronger, and is truly worthy of acknowledgement. [It not only] serves as a response to the pressing public health and safety concerns due to the pandemic, but also promotes environmental sustainability and celebrates our rich natural and national heritage,” Marcos said.

The central bank began circulating the new P1,000 polymer banknote last April in line with its mandate to safeguardthe integrity of Philippine currency.

Using advanced technology, polymer banknotes deter counterfeiting with the use of more intricate designs and stronger security measures.

Marcos said that the innovative work of adopting polymer banknotes is consistent with the administration’s policy of promoting sustainability.

Citing studies conducted by other countries, the BSP earlier reported that polymer banknotes are more eco-friendly given their smaller carbon footprint, lower water and energy usage, and reduced environmental toxicity.

The longer lifespan of the more durable polymer banknotes also cuts printing frequency at lower production cost and decreased environmental impact.

The new P1,000 polymer banknote circulates alongside the existing P1,000 paper banknote. Both can be used in cash payment transactions.

“As we use our money in our day-to-day transactions, let us remember our storied past and, at the same time, be inspired to achieve a more prosperous and inclusive future for all Filipinos,” Medalla said.