Higher denomination bills absolutely make it easier for money launderers, criminals, and corrupt officials to move large amounts of money discreetly.
Here’s how:
With ₱1,000 bills, you can move ₱1 million with just 1,000 pieces. That’s a small backpack. But if all you had were ₱100 bills, you’d need 10,000 of them — much bulkier and more obvious.
Easier to Smuggle or Hide
Large bills are ideal for smuggling cash or hiding it from authorities. It’s part of the reason why some countries phased out or never introduced extremely high-value notes.
The United States of America has the mighty $100 bill as their highest denomination.
The US hasn’t issued anything higher than the $100 bill since the 1960s, and yet the dollar remains the world’s strongest and most trusted currency.
Carrying large amount of cash in the US is subject to suspicion. Most transactions (even big ones) are digital anyway. That’s why it’s common for people to carry $20 only in their wallets.
One time my brother’s grandson, 21, was depositing $3,000 cash, money he earned from working in a barber shop, the bank’s branch manager approached him and asked where he got all those cash.
Meanwhile, in the Philippines:
Tayo we phased out the P20 bill and replaced it with coins, and since then, it has lost its perceived value. Sa parking tip, gusto singkwenta pesos na.
We now have ₱1,000 and P500 bills widely in circulation, while ₱20 is being phased out into coins.
That changes everyday perception of value. Where before a ₱20 tip was okay, now ₱50 is the new “normal.”
This encourages creeping inflation in social norms — tipping, jeepney fares, food prices, etc.
When we remove smaller denominations (like the ₱20 bill) and normalize larger ones (like ₱1,000), it warps how people perceive money. What used to be a decent amount feels like barya.
₱100 used to feel like real money — now it feels like loose change. May barya ka sa P500?
If we didn’t have P1,000 bills and only had P100, DPWH Brice Hernandez would need 200 suitcases and 70 vans to delivery the cash from their bank to the Shangri-La Hotel basement. (Investigate the bank.)
The bagman who allegedly collected P35,000,000 from the office of Curlee and Sarah Discaya would need extra muscles to carry 350,000 pieces of P100 bill.
If Sally Santos wanted to transport P450,000,000 in P20s, P50s, P100s denominations from Land Bank Malolos to the DPWH office in Bulacan, she’ll need a convoy and not just a few vans.
ATTENTION Banko Sentral ng Pilipinas (BSP)
Please PHASE OUT THE P1,000 AND P500 BILLS!! ASAP!!
This is the right thing to do.
