New ₱1000 Polymer Banknotes Set for Limited Circulation in April, Full Issuance Eyed by 2023

According to the Bangko Sentral ng Pilipinas (BSP), pilot circulation of the new polymer banknotes will be done in phases beginning next month with the ₱1000 bill with full issuance to the public set in 2023. “Maybe in six months’ time, you will see it in your ATMs (automated teller machines). I understand they [banks] have to reconfigure the ATMs,” explained BSP Governor Benjamin Diokno.

The new banknote — featuring the image of the Philippine eagle instead of World War II heroes Jose Abad Santos, Vicente Lim, Josefa Llanes Escoda — was presented to President Rodrigo Duterte on Wednesday evening. This new design has received criticism from organizations and lawmakers since it was revealed in December of last year. The domestic fiber industry, likewise, noted that the shift would be unfavorable to local economies.

Nonetheless, an agreement has already been reached between the BSP and the Reserve Bank of Australia along with its subsidiary Note Printing Australia for the production of the polymer banknotes. The trial run will cover 10 million pieces of the polymer banknotes, based on the BSP’s 2021 annual report.

“The deal 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,” explained the BSP.

The benefits — as seen in other central banks — of polymer bills will be assessed during their limited circulation. The current ₱1,000 paper bill will also remain in circulation, but both may be used for payments. “The test will help us determine the effects of polymerization on hygiene and public health, environmental sustainability, as well as the lifespan, durability, and counterfeiting rates of our money,” added the central bank.

This transition to polymer bills was announced last year, as the material is regarded to last 2.5 to four times longer compared with paper money. The government had previously attempted to introduce plastic-based bills, but it was dropped because the banknotes look “inauthentic.” The central bank furthered that the introduction of polymer banknotes is in response to the prolonged global pandemic, as well as to promote sustainability and inhibit counterfeiting. Production of these new bills is believed to have a lower carbon footprint and they can be sanitized while minimizing damage.

“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 elaborated.

“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 Philippine currency,” echoed the BSP.

Sources: BusinessWorld, Manila Times