Connect with us

Hi, what are you looking for?

News

[B-SIDE Podcast] Barya lang po sa umaga: coins in a cash-lite society

Coins — they lurk in the nooks and crannies of pockets and bags, refusing to be found when you need them the most.

But do we really need coins — which can hardly buy anything — in the first place, when experts say that digitalization is pushing us toward a cash-lite society?

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said the Philippines could be “coinless” by 2025.

In this B-Side episode, Eloisa T. Glindro, Director at the Currency Policy and Integrity Department of the BSP, explains to BusinessWorld reporter Luz Wendy T. Noble the role of small change in our financial system and why we should stop hoarding coins.

Coin hoarding can be illicit or unintentional.

This October, the BSP urged legislators to pass a measure against coin hoarding after conducting a warehouse raid, together with law enforcement agencies, wherein P50 million worth of coins were seized in Quezon City.

“We have of course uncovered some of those who tried to melt them for the metallic composition,” Ms. Glindro said of coin hoarders.

Meanwhile, there are also people who inadvertently accumulate coins. Multiply these people by several factors, add the illicit hoarders, and the BSP could have an artificial shortage on its hands. The BSP, as the primary caretaker of currency, will need to spend more to produce coins.

Keeping a piggy bank is not coin hoarding, but your money is better kept at a bank.

It’s not illegal to keep a piggy bank at home. But the BSP is urging the public to instead deposit the money they have in their piggy banks to financial institutions to ensure better circulation of the currency and prevent damage on the bills and coins.

Ms. Glindro noted banks offer a basic deposit account which does not have maintaining balance or a dormancy fee. To open an account, one needs an initial deposit of P100 and government IDs (or just the national ID).

Even though digital transactions gain traction, coins will remain relevant.

The central bank hopes that 50% of all payments in the country will be done digitally by 2023.

Consequently, Ms. Glindro expects cash usage to decrease as digital transactions continue to gain traction. However, financial inclusion also means having bills and coins available for those who need them.

“The journey towards a cash-lite society will be governed by broadening the payment choices available to Filipinos and that is by maintaining a healthy mix of safe … digital payment options alongside consistently good quality, physical currency,” she said.

Recorded remotely on Oct. 18. Produced by Bronte H. Lacsamana, Paolo L. Lopez and Sam L. Marcelo.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS Shares of Germany’s largest bank Deutsche Bank plunged on Friday as investors fretted that regulators and central banks have yet to contain the...

News

US President Joseph R. Biden (left) and Canada Prime Minister Justin Pierre James Trudeau (right) original images from Reuters OTTAWA – US President Joe Biden and...

News

STOCK PHOTO Image by F1 Digitals from Pixabay LONDON – Most patients admitted to hospitals with acute viral infections are given antibiotics as a precaution against...

News

SYDNEY, – New Zealand Foreign Affairs Minister Nanaia Mahuta said on Saturday she had expressed concerns over the South China Sea and tensions in the Taiwan...

News

REUTERS WASHINGTON/NEW YORK – The banking crisis set off by the swift collapse of Silicon Valley Bank has exposed a sharp disconnect between Washington and Wall Street....

News

Intel Co-Founder Gordon Moore link: https://bit.ly/3z4FxRx SAN FRANCISCO – Intel Corp. co-founder Gordon Moore, a pioneer in the semiconductor industry whose “Moore’s Law” predicted a steady rise...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.