BSP Introduces Coin Deposit Machines

Introducing automated coin deposit machines is the latest initiative from the Bangko Sentral ng Pilipinas (BSP) to promote the re-circulation of coins and persuade Filipinos to use them in their daily transactions.

The BSP is working in partnership with business groups with large networks of retail establishments such as the SM, Robinsons, and Filinvest groups, on the deployment of an initial batch of 25 coin deposit machines in sites across the Greater Manila Area and nearby provinces. The Coin Deposit Machine Project will run for two years and, if successful, will be rolled out across the country.

The machines will enable customers to conveniently deposit coins and redeem their value from partner retail establishments through shopping vouchers or rewards card points. Customers may also opt to directly credit the amount to their participating bank accounts or electronic wallets.

Fit coins collected via the machines will be used by the retail partners as change. Unfit coins will be returned to the BSP.

Coin shortages have been a persistent problem in the Philippines, and over the last 17 years a number of initiatives have been introduced to try and address the problem, including public collection campaigns and even legislation to criminalise hoarding.

The problem is not, however, one of shortages, but of coins not circulating. The BSP data show that there were 50 pieces of coins for every Filipino in 2005. This increased by almost seven times to 342 pieces of coins by June 2022. As of 2020, there were over 35 billion coins in circulation, a figure that has grown nearly 60% between 2014 and 2020.

According to BSP Governor Felipe Medalla, ‘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’.

‘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 realised’, he added.