Replacing the country’s lowest banknote, the P20 bill into coins might earlier than expected as Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno hinted on its timeline to be as early as December 2019.
“(P20 coin) is a go. We have already submitted it to President (Duterte) and I have seen the prototype,” Diokno told reporters last week.
“(It) could be as early as December this year,” Diokno added.
According to him, producing the P20 bills is much more expensive than coins, making it economically viable to resort for the latter.
The P20 banknote, being the lowest denomination bill, was the most printed among others.
The BSP chief earlier said that it costs them 2 pesos to print a P20 bill thus, placing greater cost to them with the paper bill being used around much and returned to the Central bank for replacement.
“(Producing) the P20 bill is very expensive because after six months, you have to replace them again,” he said.
“(P20 banknote) is the most printed bill. Coins will last five times longer. At least five times.”
The Central bank is the sole authority to produce and distribute cash in the country, all of which is made in its security plant in Quezon City.
To recall, the BSP announced its plans to issue the P20 in coin form by 2020.