The Bangko Sentral ng Pilipinas unveiled the design of the first-ever P20 peso coins on Tuesday. These will be introduced to circulation by the first quarter of 2020, eventually phasing out the current bill version.
The 20 peso coin retains the image of former President Manuel L. Quezon for its front side. A Nilad branch, the Bangko Sentral ng Pilipinas logo and an image of Malacanang Palace are on the reverse.
According to BSP Governor Benjamin Diokno, the move to coins is more cost-effective. Though the cost of producing coins is initially higher, the money pieces can endure circulation for much longer. For example, the current 20 peso bills cost 2 pesos to produce and can be circulated for 6 months. In contrast, the coins cost 10 pesos to produce and can last up to 10 years.
The currently circulated 20 peso bills will coexist with the coins until they are phased out by natural attrition.
The BSP expects that the 20 peso coin will be the most used denomination for payments in the country, thus warranting the increased durability of the tender’s new form.
Also unveiled as a redesign of the currently circulating 5 peso coin. The launch of the 5 peso piece in 2018 as part of the BSP’s New Generation Currency series was met with some criticism. Many citizens found that the 1, 5, and 10 peso pieces looked too similar.
The redesign shows the 5 peso coin feature nine sides, giving it a more distinct look compared to the other coins in the series.
However, the BSP said that they are not expecting to convert more banknotes to coins in the future.
“This may be the last time a peso bill is transformed into a coin as we expect more people to use digital payments channels moving forward amid the launch of national QR payments standard this year,” said Diokno.