They were introduced this spring on an experimental basis in the first denomination of 1000 pesos and the Central Bank of the Philippines would like to extend them. But some senators question the environmental impact of the operation and the repercussions on hemp farmers.
Manila () – The transition from paper to a plastic material for the production of banknotes has sparked political debate in the Philippines. On an experimental basis, the Central Bank of the Philippines last spring issued a new 1,000-peso (17.3-euro) note that, instead of being made from the traditional combination of hemp and cotton used for money in Manila, is printed on a polymer. This is not an absolute novelty, but rather a trend that currently involves several countries. The first to use polymers for banknotes was Australia in 1988 and today some 20 states already do so, including Canada, Poland and Vietnam.
According to the Central Bank of the Philippines, the polymer makes banknotes more difficult to counterfeit, easier to clean and cheaper to produce. In addition, the material used would be more environmentally friendly because it can be recycled and has a longer lifespan. “The longer duration of banknotes -explained deputy director general Mamerto Tangonan in a hearing in the Senate- would translate into lower replacement costs and therefore greater savings in production costs. The estimated savings in production amounts to 1,200-2,400 million pesos (between 20 and 40 million euros).
However, the sustainability of the operation has been strongly questioned in parliament. Senator Pia Cayetano, who chairs the Commission for Sustainable Development Goals, pointed out that the fact that the polymer can be recycled does not mean that it is truly sustainable. “It won’t biodegrade anyway,” she-she questioned. It will continue to be there and it will not go away.” She also added that sustainability must not only take into account the impact on the environment but also on communities. In this case, local hemp growers. Although the number of farmers affected is reduced to a minimum – objected Leonardo Montemayor, president of the Federation of Free Farmers -, the transition to importing plastic raw materials could hinder the sustainability of their activities.
