Officials of the Bangko Sentral ng Pilipinas (BSP) briefed representatives of local bank branches, government offices, local government units and other sectors last week on the security features of the recently launched First Philippine Polymer (FPP) Banknote series.
During the technical briefing and information session at the function room of ARDCI Corporate Inn, BSP Southern Luzon Regional Office (SLRO) Acting Regional Director Alvin Bermido and Bank Officer IV Paulette Gay Menguilla familiarized the participants on the design elements of the new banknote series and taught them how to determine the genuineness of a doubtful FPP banknote through examination of its security features.
Bermido said the BSP’s shift to polymer banknotes is aligned with global best practices and is in response to the evolving needs of Filipinos and the availability of global best practices.
The new banknotes are smarter (more secure and sustainable), cleaner (more hygienic and sanitary), and stronger (durable and cost effective) than paper banknotes, Menguilla stated.
But she underscored that the paper bills featuring the country’s heroes will remain in circulation for a seamless transition in the future.
Republic Act 7653 authorizes the BSP to change the design of the notes every five years, the bank officer said, adding that the P20 and P200 denominations will eventually disappear with the last batch printed.
The banknotes are printed at the BSP Security Plant Complex in Quezon City and delivered to the BSP regional office, where the different banks get the bundles and secure them at its regional cash hubs for eventual distribution to its branches regionwide.
Menguilla disclosed that at the banks, tellers usually group the paper bills into fit and unfit notes, with the latter brought to the bank’s regional cash hub for deposit at BSP Legazpi.
The unfit notes then undergoes “currency retirement” by being shredded and the remains dumped into a landfill.
In Metro Manila, the shredded bills are turned into briquettes, which are bought by tile manufacturers for use as fuel in drying tiles.
On the other hand, polymer banknotes cannot be destroyed or burned and, instead, that are recycled after shredding and made into polymer capsules or pellets which plastic manufacturers turn into pails and other plastic goods.
Menguilla stressed that the FPP banknote series is smarter than the paper versions as it has more sophisticated features, making it harder to counterfeit.
Due to its smooth and non-absorptive surface, it is resistant to water, oil and dirt and can be cleaned unlike the paper notes. Viruses and bacteria last for a shorter period on polymer banknotes than on paper ones.
The new notes are also stronger, lasting two to five times longer than paper banknotes, with use in wet markets and tropical climate not affecting its durability.
Among the designs included in the FPP series (P1000, P500, P100 and P50) are the butanding (whale shark) in Donsol, Sorsogon, Mayon Volcano and Bicol weave in the P100 note.
Most of the security features are found in the P1000 and P500 notes, as these higher denomination notes are likely to be counterfeited.
The P1000 banknote, for example, had 15 such features: a polymer substrate; enhanced value panels that has a rolling bar effect when tilted to one side; flora clear window with embossed line structures; identical asymmetric serial numbers; tactile dots intended to assist the elderly and persons with vision impairment (two dots for P50, three dots for P100, four dots for P500 and five dots for P1000);
Embossed prints (raised ink) of the portrait, letters, amount in words, and value panel; shadow thread on either side of the banknote; vertical clear window that contains multiple security features; dynamic metallic wavy lines in the front face; mirrored denomination or vertical-line effects on the notes and seal; iridescent figure when viewed from different angles; transparent embossed outline of a stylized flying eagle; and a striking rainbow effect or 3D denomination.
The BSP official also bared that there are also second level security features: microprinted letters smaller than the font size 6 capability of printers; laser-engraved microtext; and UV fluorescent features invisible to the naked eye that can only be detected in ultraviolet light.
She clarified that the 2010 New Generation Currency paper banknotes, except for the P20 and P200 ones, shall continue to be printed and circulated as it constitutes 70 percent of the notes in circulation.
On the other hand, it was stressed that the use of polymer banknotes will have a minimal impact on the abaca industry, as even the initial issuance of 500 million pieces of 1000-piso polymer banknotes is estimated to be less than one percent of the 2023 abaca exports and farming jobs.
Folded polymer bills will still be accepted, the BSP said as it asked the public to properly handle banknotes and coins.
It warned against ironing the banknotes or exposing it to extreme temperatures.