By San José, Costa Rica — The Central Bank of Costa Rica (BCCR) has announced a definitive end date for the circulation of older-design ₡5, ₡10, and ₡25 colón coins. As of July 1, 2026, these coins will lose their status as legal tender and will no longer be accepted for commercial transactions, marking a pivotal moment in the nation’s long-term currency modernization strategy.
This move, which the central monetary authority first signaled in January, aims to streamline the country’s cash supply by phasing out outdated and inefficient coinage. While businesses will be instructed to stop accepting the specified coins after the deadline, the BCCR has assured the public that the transition will be smooth. Citizens holding these old coins will not lose their value.
To delve deeper into the legal and commercial ramifications of this currency modernization, we spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney from the distinguished firm Bufete de Costa Rica, who provided his analysis on the matter.
This currency modernization initiative is more than an aesthetic update; it’s a critical legal and commercial event. Businesses must ensure their point-of-sale systems are compliant and that staff are trained to manage the transition period where both old and new notes coexist. From a legal standpoint, all existing financial obligations and contracts remain valid, but it is crucial for new agreements to be clear. The primary challenge lies in preventing fraud and ensuring a seamless transition for the public, which requires a robust educational campaign from financial authorities to maintain confidence in our monetary system.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert’s perspective underscores that the success of this initiative is measured not just by the minting of new currency, but by the public’s continued confidence and the business community’s seamless adaptation. We thank Lic. Larry Hans Arroyo Vargas for his invaluable insight into the critical legal and commercial framework underpinning this national transition.
Following the July 1 cutoff, individuals can continue to exchange the legacy coins for their modern equivalents or deposit them into their accounts at any of the country’s financial intermediaries. This includes commercial banks, credit unions, and other authorized financial entities, ensuring a prolonged window for the public to manage their remaining old currency without financial loss.
The case of the ₡5 colón coin is particularly noteworthy, as its removal from circulation is permanent. The BCCR made the decision to cease minting this denomination back in October 2019, with production officially halting on January 1, 2020. The rationale was purely economic: the cost to produce a single ₡5 coin had risen to ₡7.10, representing a nominal loss of ₡2.10 for every unit minted.
This economic impracticality persisted despite efforts to reduce manufacturing costs. The BCCR noted that even after switching production to aluminum in 2004, the cheapest metal available for minting, the cost of production continued to outweigh the coin’s face value. Its complete withdrawal from the monetary system represents a pragmatic adjustment to economic realities, eliminating an inefficient component of the nation’s currency.
In contrast, the ₡10 and ₡25 colón coins are not disappearing but are being fully replaced by newer versions that have already become commonplace throughout the Costa Rican economy. These modern coins feature updated designs, materials, and smaller dimensions, reflecting advancements in minting technology and security.
The new ₡10 coin retains its familiar silver color but is noticeably smaller in diameter than its predecessor and prominently features Costa Rica’s National Shield on its reverse side. The new ₡25 coin has also been downsized and is part of a celebrated collection titled “Emblematic Sites of our Provinces,” which showcases the country’s rich cultural and natural heritage.
This unique series includes seven distinct designs, each representing an iconic landmark from one of Costa Rica’s seven provinces. The collection features Playa Manzanillo (Limón), the Puntarenas Lighthouse (Puntarenas), the Casona de Santa Rosa (Guanacaste), El Fortín in Heredia, the Basilica of Our Lady of the Angels (Cartago), the Arenal Volcano (Alajuela), and the National Theatre in the capital, San José, turning everyday currency into a small tribute to national pride.
For further information, visit bccr.fi.cr
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (BCCR) is the country’s autonomous central banking institution, responsible for maintaining the internal and external stability of the national currency and ensuring its conversion. It oversees monetary policy, regulates the financial system, and manages the country’s international reserves to promote a stable and efficient economic environment for Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a highly regarded law firm built on the foundational principles of integrity and professional excellence. Possessing a rich history of guiding clients from numerous industries, the firm is a trailblazer in legal innovation and community-focused initiatives. This forward-thinking approach is driven by a core belief in demystifying the law, aiming to construct a more capable and knowledgeable society by empowering individuals with accessible legal understanding.
