The central bank has retired 519.93 metric tons of unfit, demonetized, mutilated and counterfeit coins through defacement.

In a statement, the Bangko Sentral ng Pilipinas said that the defacement process was undertaken beginning October 2021 until September 2022.

"Coin defacement, done via machine, involves a process that alters the surfaces of coins to prevent them from being recirculated," the BSP said.

The central bank said, the defaced coins may then be recycled into different items based on their metallic content.

Central bank's mandate

"Of the total UDMC coins defaced, 70 percent or 364 metric tons were unfit coins, 25 percent or 128 metric tons were mutilated, 4 percent or 21 metric tons were counterfeit, and 1 percent or seven metric tons were demonetized," the BSP added.

Moreover, under Republic Act 7653, as amended by RA 11211, the BSP shall retire or destroy all banknotes and coins found to be unfit, mutilated, or demonetized, including seized counterfeits.

This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services.

"To reinforce its continuing efforts to maintain and protect the integrity of Philippine currency, the BSP is also seeking the enactment of a law defining and penalizing the excessive and unnecessary hoarding of coins," the central bank said.