Metro Manila (CNN Philippines, November 3) — Banko Sentral ng Pilipinas (BSP) on Wednesday said it has retired 519.93 metric tons of unfit, demonetized, mutilated, and counterfeit (UDMC) coins through defacement.
Coin defacement is done via a machine which alters the coin’s surfaces to prevent recirculation and to maintain the integrity of Philippine currency.
In a statement, the BSP said defaced coins may be recycled into different items based on their metallic content.
The central bank also said 70% or 364 metric tons of the total UDMC coins defaced were unfit coins, 25% or 128 metric tons were mutilated, 4% or 21 metric tons were counterfeit, and 1% or seven metric tons were demonetized.
The defacement process began in October 2021 and ended in September 2022.
Under amended Republic Act No. 7653, the BSP shall retire or destroy all Philippine banknotes and coins found to be unfit, mutilated or demonetized, including seized counterfeits. This will ensure that only fit and legal tender banknotes and coins are circulated and used to purchase goods and services.
The central bank is now seeking the enactment of a law defining and penalizing excessive and unnecessary hoarding of coins.
