BSP eyes issuance of new polymer banknotes in Q1

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) is looking to issue the country’s first polymer banknote series by the first quarter of 2025.

The central bank in a social media post said it is readying the First Philippine Polymer (FPP) banknote series with “smarter, cleaner and stronger features.”

“The BSP is targeting to launch the new polymer banknote series in the first quarter of 2025,” it said in a follow-up statement.

In April 2022, the central bank issued the polymer version of the P1,000 banknote, which featured the Philippine eagle, the Sampaguita flower and the Tubbataha Reefs. At that time, the BSP said it was the first note in a new series that will focus on ‘the country’s rich flora and fauna.”

The BSP has said it chose the P1,000 bill to be the first polymer banknote as it is the most circulated denomination in the country.

In 2021, it was also the most counterfeited currency.

The central bank has yet to announce the specific design of the rest of the polymer series but will continue to feature the country’s natural resources.

“The BSP has always featured the country’s heroes and natural wonders in banknotes and coins. While the paper banknotes — which will remain in circulation — feature heroes, the polymer series will showcase the country’s rich biodiversity,” it said.

“Featuring different symbols of national pride in our banknotes and coins reflects numismatic dynamism and artistry and promotes appreciation of the Filipino identity.”

The BSP earlier said that it has printed and minted more than 70 circulated and commemorative coins, banknotes, and medals featuring national heroes.

However, paper banknotes will still remain in circulation, the BSP noted.

“The new polymer banknotes shall be circulated alongside the existing paper banknotes. Paper banknotes shall remain legal tender.”

“They (the national heroes) will not be removed from the paper banknotes, which will co-circulate with polymer banknotes,” it added.

The shift to polymer banknotes is part of the BSP’s efforts to “improve banknotes in response to the evolving needs of Filipinos and the availability of modern technologies.”

Polymer notes are more secure, sanitary and durable than paper, it added. Polymer lasts two to five times longer than paper and is resistant to water and dirt.

It is also more eco-friendly and cost-effective as it has a smaller carbon footprint and uses less resources to produce.

“When deemed unfit, these banknotes can be recycled to produce various products such as building components, plant pots, and garden furniture.”

The central bank’s initiative to introduce polymer banknotes was partly driven by the coronavirus disease 2019 pandemic.

“The smoother, non-absorptive surface of polymer banknotes makes them cleaner. Based on studies reviewed by our Department of Health, the survival time of bacteria and viruses in polymer banknotes is significantly shorter than in paper banknotes.”

Most central banks revise banknote designs on an average of 10 years, the BSP said earlier.

Countries that use polymer banknotes include the United Kingdom, Canada, Australia, New Zealand, Malaysia, Mexico, Fiji, and Vietnam.

The BSP initially rolled out 10 million pieces of the P1,000 polymer banknote, or 0.7% of the total P1,000 bills in circulation.

From October 2022 to June 2023, the total polymer banknotes hit 500 million pieces, equivalent to 31.9% of the overall P1,000 banknotes in circulation.

The central bank earlier this year said it was looking to issue an additional one billion more pieces of polymer notes.