The P20 bill, the country’s most used currency denomination, will now be turned into a coin. On Dec. 17, the Bangko Sentral ng Pilipinas (BSP) unveiled the design for the new form of currency, which features bronze and silver hues, and has a diameter of 30 millimeters.
The P20 coin retained major elements from the banknote such as the image of former President Manuel Quezon. The other side of the coin has the BSP logo and the Malacañang Palace. The coin also features the image of the nilad plant, which is believed to be the origin of Manila’s name.
The decision to produce P20 coins instead of banknotes stemmed from a study by the University of the Philippines, which showed that the P20 banknote suffered the most wear and tear owing to its frequent use in transactions. “Because of this, the 20-piso banknote is easily rendered unfit for circulation and returned to the BSP for replacement,” the study notes.
According to BSP governor Benjamin Diokno, the P20 coin is more expensive to produce: the P20 banknote costs P2 to produce, while the coin costs P10. Despite this, the coin is more cost efficient thanks to its longer circulation life. The coin is more durable and will last for 10 to 15 years, while the banknote lasts for 6 months.
The new P20 coin will be in circulation by the first quarter of 2020, coexisting with the P20 banknote as legal tender. The banknote, however, will gradually be removed from circulation through natural attrition.