BSP boosts coin recirculation, financial inclusion

The Bangko Sentral ng Pilipinas (BSP) is resorting to coin recirculation to reduce energy consumption from minting. Aside from lowering greenhouse gas emission, the move pushes BSP’s financial inclusion initiative.

BSP has installed 25 coin deposit machines (CoDMs) at major shopping malls in Metro Manila and plans to add more such machines in the provinces to bring coins kept in homes back into circulation.

The central bank’s research showed the coins per capita in the Philippines stood at 358 pieces last year, up from 121 in 2005 when the ASEAN’s average coins per capita only stood at 50 pieces.

 The research revealed Filipinos usually keep their coins in jars, drawers and piggy banks which creates an “artificial shortage” affecting businesses that use coins for change.

“The artificial shortage brought on by the coins’ non recirculation is a significant factor in the ongoing demand for coins. The CoDM initiative substantially minimizes the environmental impact of increasing coin demand by conserving natural resources, reducing energy consumption, minimizing waste and greenhouse gas emissions and fostering a culture of recycling,” BSP said in its 2023 Sustainability Report.

Since deploying CoDMs in June 2023, more than 260,000 pieces of coins amounting to over P1 billion have been collected and recirculated.

The machines also enable more consumers to make digital payments and open bank accounts.

CoDMs are located at the country’s major malls and supermarkets like Robinsons Malls, SM Malls, Festival Mall, Robinsons Supermarkets and SM Hypermarkets.

 In September last year, GoTyme, one of the six digital banks in the country and a sister company of the Robinsons Group by the Gokongweis, announced its partnership with the BSP for the CoDMs.

GoTyme app users can deposit their coins into the CoDMS and avail of up to 4 percent savings interest rate annually.

“This is 60 times more than the average payroll account and certainly more than if the coins were sitting in piggybank at home,” Gotyme Bank said in a statement to the media.

BSP Deputy Governor Bernadette Romulo-Puyat said they are looking at Cebu, Davao, Naga City in Camarines Sur, Baguio City in Benguet, and Pampanga as new locations for CoDMs.

“We were supposed to test the initial 25 machines for two years, but there has been clamor for the machines. It has been a success that the machines become full of coins within a few hours or half of the day,” she added.