Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla (PNA file photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) has teamed-up with three malls for its coin recirculation bid as it encourages people to use Coin Deposit Machines (CoDM) from these retail establishments in exchange for shopping vouchers or digital wallet credits.
During the launch of the CoDM at SM Mall of Asia in Pasay City on Tuesday, BSP Governor Felipe Medalla said the program aims not only to address the artificial coin shortage in some parts of the country but also to help lessen the need to mint more coins.
He said there is no shortage of coins in the country, but the problem persists because people tend to disregard the coins they have by not using and just leaving them at home while others keep them as savings.
Medalla said that ideally, coins should change hands at least once a week but with more people keeping their coins at home, the rate of recirculation is once every six months.
“So we will need a lot more coins than otherwise. As I’ve said, the numbers are quite staggering -- from 120 pieces (of coins) per capita to almost 400 …it’s getting worse,” he said.
The central bank chief said, “the banks are not actually happy to see you when you bring that supply.”
He is thus grateful that some malls have partnered with the BSP for his purpose and “see the coins as (a) very important part of their business and social responsibility.”
The BSP has partnered with SM Retail, Inc., Robinsons Supermarket Corporation, and Filinvest Lifemalls Corporation for this program.
Three CoDMs went live in SM Mall of Asia (MOA) in Pasay City, Robinsons Place Ermita in the City Manila, and Festival Supermall in Muntinlupa City on Tuesday.
Depositors need to input their GCash account numbers in the CoDMs so that the amount of coins they placed in the machines can be credited to their electronic wallets. The minimum amount to be credited to the e-wallet account is PHP100 while maximum amount depends on the wallet’s limit.
Those who will use the CoDMs in SM Malls and Festival Mall can also opt to receive SM shopping vouchers instead of the cash amount to be credited to their GCash accounts. There is no minimum or maximum amount of coins to be converted to shopping vouchers.
The vouchers can be used initially for over-the-counter transactions in SM Stores around the country.
Coins that are part of the BSP Coin Series and the New Generation Currency (NGC) that are fit and not mutilated will be accepted by the CoDMs.
The BSP is scheduled to deploy 25 CoDMs in select branches in the Greater Manila Area of its partner establishments until August this year.
Medalla said they will assess the success of the program for a year before deciding to increase the number of CoDMs, even to other regions.
Asked whether instances, wherein small store owners give their customers candies whenever they lack coins for change is a sign of artificial coin shortage in the country, Medalla said this is “inevitable”.
“It proves the point that we need to use technology to recirculate the coins because that’s cheaper than making more,” he said.
Aside from coin recirculation, Medalla said the program also aims to boost digital transactions in the country, citing that to date, the number of e-wallet accounts has doubled.
“The number of InstaPay transactions have overtaken ATM (automated teller machines) withdrawals and the number of PesoNet transactions is more than half the number of checks. So it’s working,” he said, referring to the government’s bid to increase the share of digital financial transactions to total payment transactions in the country.
The BSP targets to increase the share of digital payments to 50 percent of total retail transactions by 2023.
In 2021, the level of digital retail payments in the country was around 30 percent, up from a little over 20 percent in the previous year. (PNA)
