Philippines Central Bank Tackles Coin Shortage with Massive Deposit Machine Rollout

The Bangko Sentral ng Pilipinas (BSP) has collected over P600 million worth of coins through its deposit machines, aiming to address the coin shortage and improve circulation. Launched in 2022, the machines have accepted 179.6 million coins, enabling the central bank to recirculate idle coins and encourage digital payments through e-wallet credits and shopping vouchers. The BSP plans to expand the number of coin deposit machines and partner with banks for direct account crediting, promoting a cash-lite economy and reducing the BSP's minting costs compared to banknotes.

Central Bank of the Philippines Combats Coin Shortage with Coin Deposit Machines

Manila, Philippines - The Bangko Sentral ng Pilipinas (BSP) has taken significant strides in addressing the coin shortage faced by the country by collecting over PHP 600 million (approximately USD 12 million) worth of coins through its coin deposit machine initiative. As of April 15, 2023, a total of 179.6 million coins, equivalent to PHP 648.9 million, have been deposited into these machines.

Since the launch of the coin deposit machine program approximately 10 months ago, the central bank has recorded 161,725 transactions. The BSP aims to double the number of coin deposit machines this year, following the successful rollout of the first 25 in Metro Manila and neighboring provinces.

BSP Deputy Governor Bernadette Romulo-Puyat emphasized the bank's intention to expand the program to other regions and increase the number of machines based on the project's performance within the first year of operation. Additionally, the BSP intends to collaborate with traditional and digital banks to facilitate the crediting of deposited coins directly to bank accounts.

The coin deposit machine program aims to improve coin circulation within the country and encourage the conversion of coins into electronic wallet credits and shopping vouchers. Fit coins collected through the machines are distributed to partner retailers for use in their daily transactions.

Despite a substantial number of coins in circulation, the BSP has observed that an artificial coin shortage can occur in certain regions when coins are not properly recirculated. The coin deposit machine program is a key component of the BSP's broader coin recirculation initiative, which seeks to retrieve and reintroduce idle coins into the economy to meet its currency needs.

The program also aligns with the BSP's efforts to promote a cashless society through the adoption of digital payment methods. Like central banks globally, the BSP has experienced financial losses from the minting of coins compared to the printing of banknotes.

The coin deposit machines accept all denominations of coins issued by the BSP, including 1, 5, 10, and 25 centavos, as well as PHP 1, PHP 5, PHP 10, and PHP 20 coins from both the BSP Coin Series and the New Generation Currency Coin Series.

The BSP reminds the public that coins deposited should not be taped or bundled. Additionally, objects such as buttons, magnets, nails, tokens, screws, or washers should not be present in the coins to ensure proper processing.