Cash under fire: Can Purisima’s proposal clean up corruption?

In a country where envelopes stuffed with bills have long been synonymous with backdoor deals, former Finance Secretary Cesar V. Purisima is calling for a radical rethink of how cash flows through the Philippine economy. His proposal? Limit high-value cash transactions, lower the top currency denomination, and push for a digital-first financial system.

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This isn't just a technocratic tweak—it's a full-on assault on the mechanics of corruption.

The rationale

Purisima argues that cash is the lifeblood of illicit activity: “Bribes, kickbacks and under-the-table deals thrive in cash precisely because it is untraceable, untaxed and invisible to regulators,” he wrote in a recent post. With the country reeling from scandals in flood control projects and public works, he believes it's time to cut off corruption at its source.

His recommendations include:

-Setting caps on cash transactions, similar to European models.

-Requiring banks to flag large withdrawals.

-Lowering the top denomination from P1,000 to P500 or P200.