The Bangko Sental ng Pilpinas (BSP) on Thursday defended the transition to the use of polymer banknotes, saying they have a longer lifespan and are stronger than paper.
It said BSP research showed that polymer banknotes have a lifespan of as long as 7.5 years compared with 1.5 years for paper banknotes. Other countries report similar findings: polymer notes last 4.8 times longer in New Zealand and 2.5 times longer in Canada.
The BSP said it also receives fewer worn-out polymer banknotes compared with paper banknotes. From 2022 to November 2024, only 0.08 percent (689,571 pieces) of the 1,000-piso polymer banknotes issued were returned as worn-out or damaged banknotes, significantly reducing replacement costs.
It said that in comparison, of the 1000-piso paper banknotes issued during the same period, 54.4 percent (or about one billion pieces) were returned to the BSP as worn-out and damaged banknotes.
The data are based on the 1000-piso polymer notes launched by the Bangko Sentral ng Pilipinas (BSP) in April 2022.
Polymer banknotes incorporate advanced security features, such as flora clear window, vertical clear window, embossed mirrored denomination, and iridescent figure, among others, reducing the risk of counterfeiting, the BSP said.
The BSP said data also show that documented counterfeits of the 1000-piso polymer banknote were only one per 82 million pieces (10 counterfeits out of 825.4 million in circulation from 2022 to November 2024).
These counterfeits were of low quality, as their elements poorly matched the advanced security features of polymer banknotes.
It said that in contrast, documented counterfeits of the 1000-piso paper banknotes stood at one per 19,000 (98,316 out of 1.86 billion).
It said the global warming potential (GWP) of the 1,000-piso polymer banknote is 38.36 percent lower than that of its paper counterpart, as shown in a study conducted by De La Salle University’s Center for Engineering and Sustainable Development Research in 2023, commissioned by the BSP.
The lower GWP is attributed to the longer lifespan of polymer banknotes, which reduces the consumption of resources, such as electricity, throughout their life cycle. This finding aligns with studies by other central banks, such as Bank of England, Bank of Canada and Banco de Mexico.
Polymer banknotes have smoother and non-absorptive surfaces, which make them less likely to get damaged or dirty due to water, oil and dirt, the BSP said. They can also be sanitized with less risk of damage. The Department of Health confirmed this after an evidence review that included data collected during the COVID-19 pandemic.
The BSP earlier said that paper banknotes featuring the country’s heroes remain in circulation. The banknotes with historical figures will circulate alongside the newly launched “First Philippine Polymer Banknote Series,” which showcases the country’s rich biodiversity.
The BSP has always featured the country’s heroes and natural wonders in banknotes and coins.
Featuring different symbols of national pride on banknotes and coins reflects numismatic dynamism and artistry and promotes appreciation of the Filipino identity, the BSP said.
