BSP studying demonetization of P500, P1,000 bills

The Bangko Sentral ng Pilipinas (BSP) is studying a proposal to demonetize P500 and P1,000 bills as a measure against illegal activities.

BSP Governor Eli Remolona Jr. described the proposal as tempting but warned of significant economic and logistical drawbacks, stating it could cause more harm than good.

The idea was suggested by former Finance Secretary Cesar Purisima to curb corruption and money laundering.

Purisima's suggestion followed allegations of large sums of cash being transported to a congressman amid a Senate probe into anomalous flood control projects.

Remolona cited a similar debate in the US regarding the $100 bill, where demonetization was not pursued due to its widespread use by regular citizens.