Philippines: BSP to Make Its Own Polymer Banknotes From 2027, Ending Imports
The Philippines’ central bank plans to start making its own plastic banknotes in 2027 instead of buying them from abroad. The Bangko Sentral ng Pilipinas (BSP) is setting up a production line in Quezon City that could turn out up to 500 million polymer notes a year, even as the country pushes hard towards digital payments.
Key facts
- The BSP aims to produce polymer banknotes in-house “within 2027”, Deputy Governor Mamerto Tangonan said during a facility tour on 9 November.
- The first line will sit at the BSP’s Security Plant Complex in Quezon City, with capacity of up to 500 million notes a year.
- Polymer notes are currently made for the Philippines by a supplier in Australia.
- The polymer series covers the ₱1,000 note (in circulation since April 2022) and the ₱500, ₱100 and ₱50 notes released in 2024.
- The BSP says polymer notes last up to 7.5 years, compared with about 1.5 years for paper notes.
From importer to producer
Polymer banknotes are printed on a thin, flexible plastic film rather than cotton-based paper. They are harder to forge, last longer in daily use, and can be fitted with see-through windows and other security features. The Philippines has relied on an overseas supplier for these notes since it introduced its first polymer ₱1,000 bill in 2022.
Mr Tangonan, who oversees the BSP’s payments and currency management, said the central bank needs to learn how to run polymer lines itself rather than “forever just importing”. The plan starts with a single production line. He explained that a security printing plant works best when it runs one product at a time, because switching between products means changing printing plates, stopping the machines and cleaning them.
Why it matters
At first glance, a story about printing cash may seem out of place on a payments news site. But it shows something central banks across Asia are dealing with: cash is not going away as quickly as many expected, even as e-wallets and instant transfers grow.
In the Philippines, apps such as GCash and Maya, the InstaPay instant transfer network and QR Ph codes have made digital payments part of daily life. Digital payments made up 64.7% of retail transactions by volume in 2025, close to the BSP’s 70% target. Yet more than a third of everyday payments are still made in notes and coins, and Mr Tangonan described rising demand for cash alongside digital growth as a “paradox”.
That leaves the central bank running two systems at once: modern digital rails and a physical currency that must still be produced, distributed and kept secure. Making polymer notes at home could give the BSP more control over supply and timing, and reduce exposure to delays from foreign suppliers. Longer-lasting notes also mean fewer replacements, which cuts printing costs over time. The BSP also says polymer notes have a lower environmental footprint than paper and take up less space, so ATMs can hold more of them.
Public acceptance appears solid. Mr Tangonan said feedback from the public and banks has been very good, and a 2024 survey found 61.3% of Filipinos supported the polymer notes. The series was also named best new banknote series by the International Association of Currency Affairs in 2025.
What to watch
- Start date and cost: the BSP has not yet said in which month of 2027 the line will start, or how much it will cost to set up.
- Volume: whether 500 million notes a year is enough to cover demand, or whether some imports continue.
- Cash vs digital: whether rising cash demand slows the BSP’s push to reach its digital payments target.
Related: ASEAN cross-border QR payments hit a record · How Malaysia’s payment system works
Sources: GMA News (November 2026) · Fintech News Philippines (November 2026) · BusinessWorld (November 2026)
