BSP urges use of 'e-aguinaldo' as holiday demand for cash rises

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Philstar.com

December 22, 2025 | 4:14pm

MANILA, Philippines — For the yuletide season, the Bangko Sentral ng Pilipinas is urging Filipinos to send “e-aguinaldo,” or digital cash gifts, instead of handing out physical cash, as holiday demand for paper bills rises.

In an advisory on Monday, December 22, the central bank said using e-wallets and online banking offers a more convenient way to send cash gifts to godchildren, family and friends during the Christmas season, when queues at banks and ATMs typically lengthen. 

The BSP also reminded the public that exchanging unfit or worn banknotes at BSP-authorized banks is free. It warned consumers against unauthorized parties or individuals who charge service fees for currency exchange. 

Fresh banknotes and coins are being made available in banks ahead of the seasonal surge in cash demand, the BSP said.

Digital finance has become mainstream in the Philippines. Surveys in recent years show that a large majority of Filipinos now use e-wallets or everyday payments, transfers, and online purchases. For a growing number of users, e-wallets have become their first financial account due to relatively greater ease in creating accounts compared to traditional bank accounts.

Latest BSP data from 2024 show that digital payments now account for more than half of retail transactions in the country by volume. 

But the rapid shift to digital money has also exposed Filipinos to fraud. A report by a global anti-scam alliance found that Filipinos lost about P280 billion to scammers in the past year, with many of the losses linked to digital wallets, online transfers, and other electronic payment channels. — Cristina Chi