The United Kingdom’s official currency is pound sterling, or simply the pound, which is used throughout the nation to buy products and services every day.
Having become a part of Britain’s identity over the years, as well as one of the most robust currencies exchanged today, here is a brief history of our pound:
When did it all start?
The pound can be traced back to the year 760AD and is believed to be the oldest currency still in use today. The silver penny was introduced by King Offa and quickly spread through Anglo-Saxon kingdoms, eventually becoming a standard coin, just as it is now used in Britain.
Until the year 1158, the finest silver was utilised to produce the coins. In fact, use of the word ‘sterling’ was initiated by the coins containing more than 90% silver, with ‘pound sterling’ coming from the measuring out of the currency in units of pounds. In 1344, the first gold coin was produced in England, followed by the shilling in 1487. In 1489, a new style of pound coin was introduced.
Paper currency
The paper notes started to appear in Britain towards the end of the 17th Century. The Bank of England was introduced by King William III, who wanted to use the institution to finance a war with France. Although the bank was the first to appear in the country, it was used by the monarch to fulfil his own ambitions as much as providing a currency for the people.
Despite the emergence of printing technology, bank notes were still being produced by hand in 1725. It was not until around 1855 that paper notes started being printed by the Bank of England. As the requirement for currency began to increase during the Victorian era, more printing of notes was needed.
British pound trivia
Until the introduction of decimalisation in the 1970s, the pound consisted of shillings and pennies. Following decimalisation, shillings became obsolete and the pound was made up of pennies.
The pound symbol (£) is Latin and stands for ‘libra’, a unit of weight used by the ancient Romans that was actually around 12 ounces. It has been used since then to symbolise a pound.
British people have been trading in currency of some type since the earliest times, with it still being essential to building a livelihood today. If you would like to discuss ways to maximise your gold and silver, outsourcing finance tasks could be right for you, so give us a call.