IN an effort to boost coin circulation in the economy, the Bangko Sentral ng Pilipinas (BSP) is set to install so-called coin deposit machines in retail areas across Metro Manila and nearby provinces.
The BSP said it has recently signed a memorandum of agreement (MOA) with various retailers for the deployment of these coin deposit machines in malls and stores in other select areas.
The retailers involved were SM Retail Inc., Filinvest Land Inc. and Robinsons Supermarket Corp. About 25 of these coin deposit machines will initially be deployed as per the MOA, according to the central bank.
The BSP said these coin deposit machines are automated and allow customers to deposit coins and redeem their accumulated value from partner retail establishments through shopping vouchers or rewards card points.
Alternately, customers may opt to directly credit the amount to their participating bank accounts or electronic wallets.
“There is a problem when it comes to recirculating coins: some people hoard or collect them while some people leave them behind altogether, leading to an artificial coin shortage. This defeats their intended purpose as a medium of exchange,” BSP Governor Felipe M. Medalla said.
For the deposited coins collected from the machines, fit coins will be returned into circulation when partner retailers use them as change for over-the-counter payments of goods and services.
Unfit coins, on the other hand, will be removed from circulation and subsequently retired by the BSP.
Data from the BSP showed coins per capita rose by 584 percent over the past 17 years, up to 342 pieces in June 2022 from 50 pieces in 2005 as the BSP increased coin production to meet growing demand.
“That’s why we hope that this project will solve problems for everyone: businesses, financial institutions, and the public. I’m very optimistic that after a two-year pilot run, we will be able to deploy these machines [in more locations] and I am confident that the benefits will be realized,” Medalla said.