BSP defaces nearly 520 metric tons of unfit, counterfeit coins

Nearly 520 metric tons of unfit, demonetized, mutilated, and counterfeit (UDMC) coins were defaced in the past year, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday.

The central bank said 70% or 364 metric tons of the defaced coins were unfit, 25% or 128 metric tons were mutilated, 4% or 21 metric tons were counterfeit, and 1% or 7 metric tons were demonetized.

The defacement process was conducted from October last year until September 2022.

Under the process of defacement, the BSP uses a machine to alter the surfaces of coins to prevent them from being recirculated. The coins can then be recycled into different items based on their metallic content.

The defacement process is provided for under Republic Act 7653 which seeks to ensure that only fit and legal tender banknotes and coins are circulated and used for transactions in the country.

“To reinforce its continuing efforts to maintain and protect the integrity of Philippine currency, the BSP is also seeking the enactment of a law defining and penalizing the excessive and unnecessary hoarding of coins,” the BSP said in an emailed statement.

The central bank earlier this year said it is preparing legislative proposals for harsher penalties on currency counterfeiting and to criminalize unnecessary accumulation or hoarding of coins.

It is seeking to increase the length of imprisonment for those guilty of currency counterfeiting, from the current jail sentence of at least 12 years and a day, and a maximum fine of P2 million.—AOL, GMA News