MANILA — Around 519.93 metric tons of unfit, demonetized, mutilated, and counterfeit coins have been defaced from October 2021 until September 2022, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.
The BSP said the process was done by altering the surfaces of the coins using a machine “to prevent them from being recirculated”.
“The defaced coins may then be recycled into different items based on their metallic content,” it said.
The BSP said around 70 percent, or about 364 metric tons, of the coins were unfit, 25 percent were mutilated, 4 percent were counterfeit, and 1 percent were demonetized.
It said the destruction of the coins as well as banknotes is mandated under Republic Act (RA) 7653, as amended by RA 11211.
RA 11211 amended the New Central Bank Act.
“This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services,” it added.
The BSP said it hopes for the “enactment of a law defining and penalizing the excessive and unnecessary hoarding of coins.”
This reinforces the BSP’s “continuing efforts to maintain and protect the integrity of Philippine currency”, it added. (PNA)
