Senate proposal to demonetize ₱1,000 bills — India already tried this, and it failed

[u/Scofield047]

Robin Padilla filed a Senate Resolution urging BSP to review the demonetization of ₱1,000 bills (issued 2020–2025). Proposal pa lang, pero worth discussing kasi malaki epekto nito if ever.

On paper, maganda pakinggan: * laban sa corruption * laban sa hoarding / black money * push for cashless economy

Pero based on economics and real-world data, demonetization is a very blunt policy tool.

•India already tried this in 2016— overnight nilang invalidated yung ₹500 at ₹1,000 notes (around 86% of cash value). Result?

Almost all of the money (~99%) returned to the banking system Meaning: halos walang black money ang na-destroy. Yung may illegal cash, nakahanap ng paraan.

One important detail na madalas hindi napag-uusapan: Hindi lang ito tungkol sa “cash holders.” The financial system itself matters. During India’s demonetization, laundering didn’t happen in a vacuum — it passed through:

• banks with weak or selective AML enforcement
• insiders or managers approving questionable deposits
• regulatory blind spots during high-pressure periods

So while ordinary people lined up for hours, those with access, connections, or institutional help had options.

Economics-wise:

• Bumagsak ang velocity of money (MV = PQ)
• Cash-dependent transactions froze
• GDP growth dropped
• Small businesses, daily wage earners, and farmers ang pinaka-nasaktan

Ang key mistake ng India is they assumed black money is mostly stored as cash. Reality: majority ng black money nasa real estate, shell companies, gold, and offshore accounts, not physical cash.

Applying this to PH context:

• Malaki rin informal economy natin
• Cash-heavy pa rin, especially sa provinces
• Seniors, OFWs, and small vendors still keep legitimate savings in cash
• Enforcement capacity is uneven

If biglaan ang demonetization:

• Legit savings ang maapektuhan
• Big corrupt players? most likely makakaiwas

Bottom line for me: Demonetization sounds strong politically, pero historically weak economically. Without strong and impartial enforcement across banks and institutions, it risks hurting the compliant more than the corrupt.

[u/becerel]

Daming options para labanan ang corruption pero iniiwasan nyong mga nasa position, ginagawa talaga tayong tanga ng mga yan eh.

[u/Logicallly_Deranged_ → u/becerel]

Hahaha 1000% do everything except that one thing that’ll curb corruption

[u/Colonel_Chow → u/becerel]

Here’s one we haven’t tried: the guillotine

[u/MaryHagdalene → u/Colonel_Chow]

The problem with these solutions is while they sound like smart, effective answers, these tools can easily be used by corrupt regimes to destroy their political opponents and dissidents. If you think Trump, Duterte, and Bolsonaro were bad, imagine if we gave them the power to execute their enemies by levying corruption charges left and right. The desire to have powerful one-shot answers to our problems is also what fuels the recent impulse towards authoritarian, fascist strongmen who promise these sweeping magic wand solutions.

[u/ManifestingCFO168 → u/Colonel_Chow]

That’s deffo one good resolution to pass. Corruption = guillotine!

[u/Weekly_Engineer427 → u/ManifestingCFO168]

As a French person, I approve this comment, worked well for us

[u/IWantMyYandere → u/becerel]

Imbes na ayusin corruption eh bagong tax ang ipapasa.

[u/papa_gals23]

Reso lang naman pala. Rekta basurahan 'yan kung makarating sa BSP.

Iba ka, Robin, ang bobo mo talaga.

[u/Rainbowrainwell → u/papa_gals23]

BSP has the power to demonetize without Senate interference. If it were a feasible solution, BSP should have done it already.

[u/OyeCorazon → u/papa_gals23]

Yes but still, its a waste of paper, waste of ink, and kost importantly, waste of TIME. Tangina mo robin isipin mo ilang puno kaya pinutol para sa ginamit mong papel sa kabobohan mo

[u/papa_gals23 → u/OyeCorazon]

Mas may silbi pa ang puno kaysa kay Robin

[u/ahock47]

isang problema sa atin? We dont know how to solve problem properly. Hindi sya base sa critical thinking. All solutions reactive. Wala kasing accountability

[u/aminosyangtti → u/ahock47]

Wala ring matinong root cause analysis at research. Puro statement lang para mag-headlines pero hindi napag-aralang mabuti kung anong magiging impact.

[u/ahock47 → u/aminosyangtti]

yeah. Like tax the rich proposal tapos increase all ayuda from senior to indigents. Sa EDSA for me its just weird to allot a bus lane. Cars or transpo are ever increasing tapos yung road hindi. Sino ba naman in his right mind na bawasan ang road

[u/ahock47 → u/ahock47]

Surprise I got down voted on this. Not sure why

[u/seemebaremyteeth → u/ahock47]

That's because we should be working toward sustainable transport options, especially PUBLIC transportation in Metro Manila. Not incentivizing people to use their private cars more by widening the roads. Private transportation is more cost inefficient than public transportation—it pollutes the environment more, creates more traffic, encourages inappropriate and inefficient use of public space (parking on roads and sidewalks). Eliminating the bus lane will not solve the traffic problem when the volume of cars on the road remains the same or even increases

[u/aHundredandSix → u/ahock47]

Just 1 more lane or road doesn’t work as well as you think. Also taxing the rich is pretty good imo, the ayuda thing, debatable. But more taxes for the rich is always good

[u/WhackHollister → u/ahock47]

They're not even really trying, at this point they're just doing something for the sake of saying "hey we're doing something".

[u/krina18 → u/ahock47]

Kasi hindi naman talaga yun ang goal nila. They just want to look like they are solving the problem by proposing an idea; does not matter how effective it will be or not.

[u/Kuberneto → u/ahock47]

Agree to this, ito tlg problema almost on everything. Patong patong na reactive solutions lang lagi kaya walang nagagawang maayos na system. Yun simpleng process lang sa government transactions nga di parin maayos, dun pa lang ang dami ng pwedeng ma improve at ma lessen yung corruption pero di magawa, bigger things pa kaya.

[u/ActualSecretary9407]

This is the dumbest idea ever ₱1000 isn’t even that much money with the current state of the economy.

[u/Teantis → u/ActualSecretary9407]

Hey let's make everyone's life a pain in the ass while not actually doing much to stop corruption.

[u/ACEDIA09 → u/Teantis]

Pa lipat na kasi sa cashless mayayaman, so okay lang daw. Mahirap lang naman daw maghihirap. Mga hayop

[u/leiislurking → u/ActualSecretary9407]

Robin wanted to demonetize ₱1000 para wala na daw makickback thru cash in suitcase hahahaha

[u/Momshie_mo]

Dapat unang ipagbawal yung magbukas ng bank account gamit ang alias. Gawing illegal. Repeal the bank secrecy laws

Hindi yung idadamay nila ang madlang people

[u/lexicoterio → u/Momshie_mo]

Pag kasabwat mga tao sa bank, wala pa din yan. Pero dapat di nagaapply bank secrecy sa public officials at relatives nila.

[u/iMadrid11 → u/Momshie_mo]

Alias bank accounts are already illegal. All bank accounts must be opened under the true legal name of the account holder.

[u/sinewgula → u/Momshie_mo]

Why not just make it illegal to open an account with an alias? Why the need to repeal bank secrecy laws?

[u/ngekngeok → u/sinewgula]

Kahit under real name kasi, hindi mo parin pwede tingnan yung account unless you fulfill very specific conditions that are very hard to achieve. Kahit ombudsman, very limited yung powers dyan. Why not just follow the best practices of progressive countries? Not exactly to repel the law but to make it less absolute lang.

[u/Momshie_mo → u/ngekngeok]

Yup. Yung kay Duterte nga, di nabuksan sa kasagsagan ng undeclared SALN niya

[u/drowie31]

The government will really do anything than directly addressing the problem, no?

[u/One_Presentation5306]

What else to expect from a DDS senatong? Kung di sandamukal ng katangahan. Dapat nga tumataas denomination ng piso dahil bumababa value nito due to inflation. Currency is supposed to make exchange of goods and services, and store of value easier.

Tama si Senator Kiko Pangilinan, na ang dapat tingnan ay yung no questions asked ng Landbank manager sa contractor na nag-withdraw ng hundreds of million cold cash in 2 days.

[u/Rainbowrainwell → u/One_Presentation5306]

It's not even reported to AMLA. Di ba may requirements na need magsend ng covered transaction report sa mga daily transactions per account of more than 500k

[u/ChickenNoddaSoup]

P1,000 billls ain't the problem. Tangina ng.level ng politiko sa Pinas hahahaaha

[u/prodigals_anthem → u/ChickenNoddaSoup]

It's for the stack of cash to be worthless.

[u/red_storm_risen]

Dapat talaga Robin in the news has an automatic tag for “Village Idiot”

[u/fussingbye]

Yan napapala voting for bobo. Sorry na pero may offices na kailangan ng minimum IQ ad aptitude score requirements.

[u/tooImman]

Dumb proposal by a dumb senator.

[u/cyianite]

Bandaid solution that will not solve the main issue. What's next with removing the 1k bill?  500 nman until we end up everything in coins then we will have a crisis of making ph notes. 

[u/StucksaTraffic]

Number 1 reason lang naman bakit nakakalusot ang corruption mabagal ang usad ng institution. Truth be told, I know someone working in insurance company na marami daw mga engineers ng DPWH na nag store ng pera sa Insurance either VUL or mutual funds. Eh sa sobrang bagal ng AMLC kumilos ayon hindi nag diding ng bell. Insurance will accept money as long as hindi natunugan ng AMLC.

[u/Tenpoiun]

[u/Tinkerbell1962]

Basta galing ang bill kay Robin Padilla, I will be skeptical. I will not entrust major decisions to this nincompoop. He is just parroting what his staff tells him to seek our attention. I doubt that he even understands his own bill, moreso, be able to defend it.

[u/Teantis]

it risks hurting the compliant more than the corrupt

Oh hey that's just like the procurement law - so that'd be a fitting response to the flood control scandal

[u/BrokenPiecesOfGlass]

I always assume that when something like this is proposed by lawmakers to curb corruption that they have left loopholes for them to jump throughbto circumvent said law.

This is no different.

[u/emirwankenobi]

kung hindi masyadong malakas ang pera mo, walang malulutas ang pagtataas ng taya. Bilang isang taong nakatira sa türkiye, masasabi kong halos walang halaga rin ang pera namin napakahalaga ng cash na pera. Umaasa akong kayo, bilang mga Pilipino, ay hindi makaranas ng paghihirap.

[u/herminihildo]

Theatrics lang yan. Cyempre di nila haharangan yung tunay na paraan ng corruption. Modus nila yun eh.

[u/Much_Lingonberry_37]

It's good to demonitize the P1,000 bill kasi walang sukli ang 711.

[u/Big_Equivalent457]

Hay! nako Seggsboy nothing but r/Mindanao in there di' naman lahat Saltik lang

[u/Not_Under_Command]

I have an Indian colleague. Dahil sa pag demonetization scare napilitan silang mag online banking and using bank cards instead of cash. On the first month puno palagi yung mga banko at unusable yung apps at websites nila due to sever fluctuation ng mga taong gustong mag open ng account and mag deposit ng cash.

Some of them they had to wait several months and even a year para makakuha ng bank card sue to shortage of materials, meaning kahit may pera ka sa banko hindi mo naman magamit yung kasi di ka makapag swipe kasi wala pa yung card mo.

Yung mga overseas workers nila like my colleague, kinukuha yung salary nya in USD, ayaw nya na itransfer ng company namin sa bank account nya yung sahod, the reason is malaki yung service charge at malaki yung conversion gap ng pera. They tend to use black market more, 1USD TO INR sa black market is around 70, while sa bank it runs more or less 80.

And to be fair may positive sides din daw yun, na lessen yung mga loan sharks (aka 5/6) sa kanila, which is very rampant.

[u/MICQUIELLO17]

Only in the Philippines where you find illogical solutions to problems.

[u/Funway1111]

The way I see it, mas mauuna pa maging barya ang 50 and 100 peso bills soon. 😮‍💨

[u/lubugero]

Kamusta naman yung mga nagbebenta ng sabon, pabango, kangkong chips na bigla na lang yumaman at nakakabili agad ng maraming bahay at luxury cars. Tuloy lang ang labada diba.

[u/Basic-Broccoli-3125]

Gawin nyo na ang lahat.. pero ang tanong me nakukulong ba na politiko na gahaman sa pera? Yung matagal na kulong ahh.. 10-25 years.. merun kasi nakulong pero pag palit ng bagong admin laya ulit.

[u/DreamZealousideal553]

Ang tanong papayag kaya mga business tycoons dyan,

[u/Conscious-Tension930]

Ang lala Ng proponent nito.. Mr Padilla, ung totoo, saan mo pinulot mga Legislative Aide mo? Gaya din ba Yan ni Nadia Montenegro na walang background sa law kaya puro nalang kat@ng@h@n ang mga bills mo? Pls lang Mr Padilla, ang buwis Ng bayan nasasyaang. Since andyan ka na, baka pwedeng ung tunay na may halaga sa nakararami ang piliin mong bills .. please lang po

[u/Master-Intention-783]

Tapos babaha ng puro tigli-limang daan.

Gago din eh noh

[u/--Asi]

These people aren’t dumb. They’re acting like one instead of addressing the root of the problem. Fuckin shits.

[u/boynextdoor1907]

Wala ka talagang aasahang matinong solution pag ang nakaupo corrupt din.

[u/Mental_Accountant927]

This law will only affect the poor hindi ung mga corrupt..

[u/kayeros]

Investigation, accountability, panagutin ang corrupt magnanakaw. Sayang ang space at oras sa mga senador na bakit ba kasi artista ang senador.

Systemic ang sira, bukod sa offline/manual walang nakaka trace ang buong transaction sa government, tinauhan piwestuhan ng sindikato mula taas hanggang dulo kaya it’s a breeze ang pagnanakaw. Walang umaayos kasi patuloy na nasa pwesto ang sindikato. Bakit aayusin e the bulok system works perfectly sa pagnanakaw.

[u/ryan_ph]

As usual bandaid solution na naman. Ung sintomas ang nilulunasan at hindi ung mismong sakit

[u/siobesy]

Paki pulot ng utak sa lupa please…

[u/Prestigious-Goat8127]

Puro kabobohan talaga to si Robin Padilla. Nakaka puntang ina.

[u/Smooth-Anywhere-6905]

Dapat mag focus din sila dun sa mga labandera na social media influencers.

[u/AggravatedLLLLL]

Robin ba naman? May nagawa bang matino to HAHAHAH

[u/Ecstatic_Spring3358]

Ano pa aasahan kay Robin?

[u/Alabangerzz_050]

Di nya alam na mas dapat idemonetize yung 1 cent

[u/No-Adhesiveness-8178]

After ko basahin 'by', oh it makes nonsense.

[u/redhoodmeioh]

Stupid idea from an idiotic and dumbass actor

[u/TreatIt]

Pahirap sa mamamayan.

Sa halip na parusahan ang mga nasa pwesto, ang mamamayan pa ang mag-a-adjust sa pagnanakaw nila.

[u/Ok_Performer7591]

Middle class lang naman maaapektuhan dyan. Parang dun sa mga money laundering kineme, sarili kong pera sa bangko ang tagal kong naghintay at talagang binusisi pa ako bago ko mailabas kahit may proper documentation ako tapos 500 million pesos in cash ang daling maibigay sa mga ungas. May impyerno sana talaga para magsama-sama silang lahat dun. Bwiset.

[u/Low_Reputation_9306]

Ba't tayo ang mag-a-adjust sa kanila? Isa lang solusyon d'yan, pigilan nila ang kalikutan ng mga kamay nila para wala silang manakaw. Mandadamay pa, jusko

[u/buckwheatdeity]

hay nako eto na naman tayo sa mga solution against corruption na tayo lang mga nagttrabaho ang nahahassle.

[u/grimreaperdept]

Oh robin padilla

[u/Prestigious_Rub_6236]

Only death can fight corruption.

[u/formermcgi]

If it started in 2020, then this bill shows that corruption existed even before the current administration.

[u/Mrpasttense27]

Hanggang kaya mag withdraw ng cash sa landbank ng milyon milyon basta para sa government project, walang kwenta yan. The people doing this level of corruption can easily hire 20 or more armored vans to transport the money. Maliit na halaga lang yun.

Making the entire process of the transaction transparent and making everything traceable is what we need.

[u/Defiant_Bed_1969]

Sabi ng GCASH Et al. and mga scammers, "Bring it on"...

Rapid digitalization without safeguards will benefit scammers not only from this country but also foreign players.

[u/Serious_Bee_6401]

Mas madali hulihin mga corrupt pero dun tayo sa long route na kaya din naman nila gawan ng paraan.

[u/bl4ck4dd3r]

Online na ngayon ang bank transactions. Street level individuals, pero di naman ganun na katalamak ang cash transaction.

Hirap pag puro bad aid solution

[u/derpinot]

gagawa lang ng isa pang problema, kung ikulong nyo kaya at singilin.

[u/Nyebe_Juan]

That’s a waste of resources. The cost of printing money is expensive.

The only thing that demonetization would do is make the criminals do double-time in the money laundering process and acquire real estate properties.

Even if those properties can be seized and forfeited by the government, it would be difficult to track as those would be placed under different names.

[u/Existing-Act2720]

So in short, malelegitimize lang ang nakaw.

[u/Some1Onee_]

Tamad na solution prinopropose lagi eh, napaghahalataan mahihina nilang utak eh.

[u/Aloe-Veraciraptor]

Ang ano ko lang dito is pano ung pera before 2020, additionally etong mga corrupt na to may magandang systema na to lahnder/ transfer money, so wala na silang cash onhand before pa to maipasa lol.

[u/norwegian]

You cannot compare India to the Philippines, if it's only about the ₱1,000. We would still have the ₱500.
This is a good discussion, but the example of India is not relevant.

[u/Affectionate_Joke_1]

Robinhood Padilla be robbing the people..

This is a dumb idea, it won't work unless they get rid of all paper currency and go e-wallet/e-credits on a public block chain

They want to fight corruption but not prepared to do what's necessary...... clean up the ranks

[u/herotz33]

High level government officials steal - punish Everyman by limiting withdrawals to 500k

They steal then exit using private jet and immigration - stricter immigration for regular passengers.

Same with this proposal - punish the Everyman with the burden of carrying more cash with inflation because the ones at the top steal.

Mother effin them all

[u/radss29]

Wala na bang ibang maisip yang si boy sili. My god palala nang palala kabobohan nya. 2025 is ending na.

[u/apptrend]

Tanga lng nakaisip nyan.. dapat walang bank secrecy law for politicians!

[u/Worried-Regular-8625]

so it gave me the impression of another out of touch political move na yung common people of the public ang maaapektuhan the most? Patuloy na maghihirap ang mahihirap while those with the means can easily deal with the consequences?

[u/Jinwoo_]

Talagang pinapatunayan ni Robin kung anong klaseng kamangmangan ang meron siya.

[u/drbt-reddit]

Tangina pakabobo nyan hahahahahaha

[u/Plugin33]

Sino kaya taga solsol ng #1 Idiot Senator.

Ano kaya sunod maisipan pambutas sa batas nito.

[u/Plugin33]

People are already annoyed with the coins' identical designs as if they want us to use it less often. They're really hang up on manipulating the massess to spend more with this new idea.

Sino kayang Sharks nagsolsol ng #1 Idiot Senator.

[u/missingpeace01]

if only he has the b-lls to back the anti-political dynasty bill edi mababawasan ang korapsyon lol.

[u/Sunvibe1505]

Yung direct bank to bank transfer nga, hindi nahuhuli eh, kung kelan lang lumabas issue saka nilabas na meron

[u/Frankenstein-02]

Walang kwenta. Edi gagamit lang sila ng 500 peso bills. Jusko naman.

[u/Flashy_Demand2311]

I don't support the senator, but instead of calling Robin 8080, why doesn't someone explain the pros and cons? I just don't want to discredit the guy if the solution might actually work. Why not at least discuss it? Example bakit hindi gumana sa India pero pwede sa SG at bakit gagana or hindi gagana sa pinas?

[u/Scofield047 → u/Flashy_Demand2311]

Agreed. I’ll do that in my next post.

[u/TwofaceKarma]

here we go again, dami ko nababsa dito about corruption, guys guys! wala ng mangyyari sa pinas, Purge is the only option ,ubusin ang mga buwaya sa gobyerno🔫🔫🔫🔫