THE Bangko Sentral ng Pilipinas (BSP) will release in circulation a P20 coin in 2020 following its scheduled ceremonial launch in December this year.
A study conducted by the University of the Philippines revealed that the P20 banknote is the most-used denomination for payments across the country. Because of this, the P20 banknote is easily rendered unfit for circulation and returned to the BSP for replacement. As such, the issuance of a coin in lieu of a banknote is more cost efficient in terms of currency production in the long run.
Official photographs and specifications of the P20 New Generation Currency (NGC) coin will be presented by BSP Gov. Benjamin Diokno during its launch. To date, the BSP has not released any official image regarding the proposed P20 coin.
Nevertheless, the latest addition to the NGC Coin Series will retain major elements of the P20 banknote. The design and features of the new P20 coin will make it easily distinguishable from the rest of the denominations in the NGC Coin Series.
Once circulated, the new P20 coin will co-exist with the P20 NGC banknotes as legal tender.
The P20 banknote will be gradually removed from circulation through natural attrition.
Apart from the P20 coin, the BSP will also release in circulation an enhanced P5 NGC coin to make it more distinct from other denominations in the NGC Coin Series. The changes were based on studies on the design, security features and specifications of the new coins.
The Cebu Bankers Club (CBC) earlier welcomed the BSP’s proposed move because of the banknote’s tendency of wear and tear. CBC past president Neil Credo said it will benefit the public since coins are more durable and can last more years in circulation than the banknotes. (PR)