In a recent Senate deliberation on the proposed General Appropriations Act for 2024, Senators Koko Pimentel and Sonny Angara discussed the continued use of polymer banknotes by the Bangko Sentral ng Pilipinas (BSP).
Senator Pimentel voiced strong reservations to the polymer program, wondering why the BSP was in fact planning to print not only P1,000 notes but also P500 notes, and why, despite previous Senate resolutions discouraging the use of polymer for high denominations, the BSP remains resolute in its stance.
He underscored concerns about the environmental repercussions of replacing biodegradable cotton-abaca-based notes with plastic, the absence of Philippine-produced abaca in the polymer notes, and the suitability of the BSP’s multimillion printing facility for polymer bills.
Senator Angara articulated the BSP’s position, citing the central bank’s claim that polymer banknotes offer superior security features, rendering them more resistant to counterfeiting than traditional paper counterparts.
Drawing on the experiences of other nations, including Canada, Australia, and New Zealand, he highlighted the success of the shift to polymer in reducing counterfeiting rates. Moreover, he emphasized the advantages of polymer banknotes, including heightened durability, enhanced sanitation, and an extended lifespan, ultimately leading to reduced production frequency.
Senator Pimentel raised a valid concern about the potential counterintuitive nature of using polymer banknotes, suggesting that security features might be more effectively embedded in non-plastic banknotes. He also advocated for the incorporation of local materials in banknote production, aligning with the Tatak Pinoy Bill that was recently passed in the Senate.
The debate also touched on the multiyear nature of the BSP’s polymer project, with Senator Pimentel urging the BSP to anticipate the enactment of the Tatak Pinoy Bill. This bill aims to promote globally competitive Philippine products and services.
