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BSP wants coin-hoarding penalized after P50M P1-coin seizure

Republika

The Bangko Sentral ng Pilipinas (BSP) or central bank is calling for legislation against coin hoarding. This is on the heels of P50 million worth of P1 coins being seized recently in Quezon City.


In a statement, the BSP stated that they are “advocating the passage of a law on the hoarding of an extremely large volume of coins, as the central bank believes that the criminalization of this activity reinforces continuing efforts to maintain and protect the integrity of Philippine currency.”


The statement also said that coin hoarding would lead to coins not being circulated efficiently. It leads to them not being able to be used as an exchange medium. Moreover, the transactions aren’t able to flow harmoniously and shortages that shouldn’t exist appear to.


All in all, [excessive coin hoarding] “is disruptive to the financial system,” BSP’s statement also said.


The Bureau of Customs, the National Bureau of Investigation, and the Philippine Coast Guard joined together in a partnership. This joint operation led to the P1 coin stockpile seizure from a warehouse last October 1. It amounted to a total of P50 million.


At present, the authenticity of the pile’s coins are still being checked out. Samples are being tested by the BSP. The seized coins apparently came from a number of different design series.


In 2018, new coin designs were released by the BSP. In 2019, the P5 coin got an enhanced version so that it could be better differentiated from the P10 coin.


“Under its Coin Recirculation Program, the BSP encourages the public to refrain from unnecessarily accumulating coins,” the BSP said, “and instead use them to pay for goods and services or deposit them in banks.”

Photo: Business World


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