Because the Philippines were a colony of Spain from 1565 until 1898, Spanish coins from many different sources found their way to the islands. During a period from 1828 through 1837 Spanish coins were struck with a counterstamp and made circulating coins of the realm.
The first counterstamps were designed in a way to destroy the legends of freedom depicted on many of the coins from the Spanish American Colonies. These were large stamps that due to complications were discontinued 1830. Krause only shows these as known on the 8 Reales.
In 1832 the counterstamps returned, but this time they were much smaller, and depicted a crown and the letters and numbers F.7.0 for King Ferdinand VII. There were 2 different variations of this stamp, one being round with the other being oval. These are known on 1, 2, 4 and 8 Reales, with the vast majority being the larger denomination pieces of 8. These were discontinued in 1834 because of the death of Ferdinand VII.
Between the years of 1834 and 1837 a new counterstamp was used with the letters and numbers "Y II" for Queen Isabel II with several different varieties of crown. These were also known on 1, 2, 4, and 8 Reales denomination coins from several different Spanish colonies. The counterstamps were discontinued in 1837 after Spain recognized the independence of Mexico, Peru, Columbia, Bolivia, Chile and other former colonies in Central and South America.