BSP retired UDMC coins through defacement to protect the integrity of the Philippine currency.
The Bangko Sentral ng Pilipinas (BSP) retired 519.93 metric tons of unfit, demonetized, mutilated, and counterfeit (UDMC) coins through defacement to preserve the integrity of the Philippine currency.
Coin defacement, done via machine, is a process that alters the surfaces of coins to prevent them from being recirculated. The defaced coins can then be recycled into a variety of items depending on their metallic content.
Most or 70 percent or 364 metric tons of the total UDMC coins defaced were unfit coins, followed by 25 percent or 128 metric tons that were mutilated, then 4 percent or 21 metric tons of counterfeit coins, and 1 percent or 7 metric tons were demonetized.
Republic Act (RA) No. 7653, as amended by R.A. No. 11211, the BSP is required to retire or destroy all Philippine banknotes found to be unfit, mutilated, or demonetized, including seized counterfeits. This ensures that only legal tender banknotes and coins are circulated and used to buy goods and services.
BSP is also seeking the passage of legislation that defines and penalizes excessive and unnecessary coin hoarding in order to support its ongoing efforts to maintain and protect the integrity of Philippine currency.
Tags: #BSP, #UDMC, #Coins, #Defacement