Ex-finance chief urges cash demonetization to fight corruption

Metro Manila, Philippines - Former Finance Secretary Cesar Purisima urged policymakers to demonetize ₱1,000 and ₱500 bills to curb large-scale corruption amid the flood control scandal.

He made the suggestion following the Senate testimony of former Department of Public Works and Highways (DPWH) district engineer Henry Alcantara that he delivered around P1 billion in kickbacks to a supposed aide of Ako Bicol party-list Rep. Zaldy Co by using six to seven vans to transport more than 20 suitcases filled with cash.

Purisima said that if only smaller bills are in circulation, it would take hundreds of suitcases to move the same amount, making corruption harder to carry out.

“The sheer impracticality would make this kind of corruption much harder to hide,” he said in a Facebook post on Wednesday, Sept. 24.

His proposal includes a six-month period for the public to exchange old bills, with valid IDs required and transactions of P500,000 and above to be deposited and reported to the Anti-Money Laundering Council.

Purisima cited countries with similar measures like India, Canada, and Nigeria which phased out large-denomination notes to curb money laundering and organized crime.

The former finance chief added that demonetizing bills would not burden ordinary citizens and businesses; instead it will strengthen financial transparency in the long run, and cannot be bypassed by shifting to crypto, since corruption in the Philippines still relies on cash.

However, he noted that the demonetization will not solve corruption in the country.

“This is not a silver bullet, but it makes corruption more expensive, riskier, and harder to hide; raising the logistical barriers matters,” Purisima said.

Purisima served as the finance secretary from during the Arroyo and Aquino administrations.

NewsWatch Plus intern Angeline Mae Villanueva contributed to this report.