The recent introduction of new polymer banknote denominations of 500-, 100-, and 50-piso notes, followed studies that show the smarter, cleaner, and stronger characteristics of the new currency feature.
The data are based on the 1000-piso polymer notes launched by the Bangko Sentral ng Pilipinas (BSP) in April 2022. The key findings include the notes being smarter as they includes sophisticated security features; and that 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.
BSP data showed that documented counterfeits of the 1000-piso polymer banknote were only one per 82 million pieces or the equivalent of 10 counterfeits out of 825.4 million in circulation from 2022 to November 2024.
Moreover, these counterfeits were of low quality, as their elements poorly matched the advanced security features of polymer banknotes.
In contrast, documented counterfeits of the 1000-piso paper banknotes stood at one per 19,000 (98,316 out of 1.86 billion).
Climate adaptive
Being a smarter currency, these have a lower contribution to climate change, according to the BSP.
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.
It is also a cleaner alternative. Polymer banknotes have smoother and non-absorptive surfaces, which make them less likely to get damaged or dirty due to water, oil and dirt. They can also be sanitized with less risk of damage.
BSP said the Department of Health confirmed the sanitary quality of polymer notes after an evidence review that included data collected during the Covid-19 pandemic.
Research also showed that polymer banknotes have a lifespan of up to 7.5 years each 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 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.
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.
Public acceptance
Since the release of the 1,000-piso polymer denomination in April 2022, public acceptance has steadily grown.
A nationwide BSP Consumer Expectation Survey conducted in the first quarter, which included rider questions on polymer banknotes, revealed that 68.3 percent of respondents who were aware of the 1,000-piso polymer banknote approved of it, up from 38 percent in the same period of the previous year.
In addition, 61.3 percent of respondents in the first quarter said they supported the polymerization initiative, up from 10.9 percent in the previous year.
Over 40 countries worldwide now use polymer banknotes, underscoring the global trend toward this smarter, cleaner and stronger alternative.
