Can you imagine a P20 bill turned into a P20 coin? Wouldn’t that be a big of a change? Especially considering the fact that the P20 bill is the most used type of bill or denomination for payments; couldn’t that spark a change?
Well if you think it’s weird – we do too! However, the Bangko Sentral ng Pilipinas (BSP) said and announced that they are indeed releasing a P20 coin that would replace the current P20 bills we have been all used to.
Read: Cryptocurrency ATM, Rolled Out by the UnionBank of the Philippines
Why did the BSP decide to migrate to a P20 coin?
The BSP said that having a coin for the 20 Philippine Peso will be more cost-effective versus the bank note. Moreover, a study in the University of the Philippines (UP) said that the P20 denomination is the widely-used bill across the country.
In addition to that, they said that this bill is easily rendered unfit for circulation and most often, they’re returned to the BSP for replacement. The BSP noted that the P20 banknote or bill suffers the most wear and tear of all the banknotes in the country.
Read: Duterte Signs a Law That Would Regulate Islamic Banks in the Philippines
The BSP said that issuing a coin instead of a banknote will be more cost-efficient in terms of production.
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.”
Design of the P20 coin
The design of the P20 coin is yet to be shown and released by the BSP; the final design for it will be presented to Benjamin Diokno, Central Bank Governor during the launch.
In this presentation, everything that is going to be distinctive with the coin will be revealed; the major elements of the bill such as the design, the make, the texture, etc.
Read: ING Philippines Rolls Out Pure Digital All-Around Electronic Banking
The BSP mentioned that the ceremony for the official launch of the new P20 coin would take place in December; a month or a few months before its official circulation in the year 2020.
In order for the BSP to not confuse the public, they disclosed the fact that the P20 coin would have its distinctive elements; this basically means that it’s going to easily be distinguishable from other coins unlike what happened with the New Generation Currencies which sparked a lot of violent reactions from people due to the fact that almost everything looks the same.
Read: Wives Who Keep Their Husbands’ ATM Cards Might be Punished For Economic Abuse
Will the P20 banknote be automatically be removed from general circulation?
According to the BSP, the P20 new coin will initially be of significant use together with the P20 banknote version. After gradual production and circulation of the new P20 coin, the P20 banknote will be phased out and will not be of circulation.
New Generation Currencies
Read: The Central Bank of the Philippines (Bangko Sentral ng Pilipinas) Launches “New Generation” Currency Coins
In addition to that, the BSP also said that they are currently in the process of enhancing and improving the version of the P5 coin. The public can expect the official release of it by the end of 2019.
The reason for this is because the “new generation” P5 coin cannot easily be distinguished from the P1 coin, making it difficult o tell apart.
Many people pointed out the fact that the new Philippine coins feel and look similar-even the P10 coins. Unlike the traditional version of the coins which have distinctive colors and features. This then results to them being hesitant to use the coins.
Read: Taxes Can Now be Paid Online Using PESOnet
The BSP said that they are on the move in modifying the look of the coins (particularly the P5 coin) by the end of the year to put an end to the confusion and the violent reactions of the public.
Furthermore, the BSP clarified that the changes were based on various factors on how they came up with the decision to modify the coins.
The changes were based on studies on the design, security features, and specifications of the new coins.”
What do you think about having a P20 coin? Could this really be a great and efficient way on how the government oversees the production of it? Can a P20 coin change a lot in the economy as we are experiencing it right now?
Or can it be another type of confusion to the mass public on using currencies that look similar to one another? Nevertheless, the BSP said that they are currently working on making the new P20 coin to be easily distinguishable and identified versus the other coins in general circulation.
Source/s: Rappler | ABS-CBN News
Leave a Reply