‘Demonetizing high-value notes unlikely to curb financial crimes’The study argued that removing the legal tender status of high-value notes is “a blunt instrument that inflicts severe collateral damage to legitimate, cash-dependent populations,” while offering limited benefits in deterring corrupt actors who can easily shift to alternative stores of value such as real estate, precious metals, shell companies, gold and cryptocurrencies. Despite withdrawing notes that accounted for 86 percent of the total value of banknotes in circulation, the policy failed to eliminate black money or curb corruption. As of end-August, the P1,000 note accounted for 83 percent of the total value of banknotes in circulation and 41 percent in volume. Combined with the P500 note, the two highest denominations accounted for 93 percent of the total value and 51 percent of the total volume. Without these, the study warned, demonetization risks repeating costly failures seen in other jurisdictions while leaving the root causes of corruption unaddressed.

Source: Philippine Star December 30, 2025 16:46 UTC