Money and the way we use it has changed in recent decades.
With digital and contactless payments on the rise, the choices we make with our money, as individuals and businesses, have an impact on the future of money. Futureproofing the economy to meet our needs, now and in the future, is the job of the Bank of England.
This exhibition responds to questions you have been asking us about cash, digital payments, and more. Read on to find some of the most important questions addressed in the exhibition.
What is money?
George V Sovereign (1921) by Edgar Bertram Mackennal and Benedetto PistrucciBank of England Museum
For something to be money, it needs to be:
A way to store wealth – it can be stored, retrieved and used at a later time.
A unit of account – it can be counted and used to measure value.
A medium of exchange – it’s widely accepted and transferrable from one person to another.
Most importantly, we all need to trust that our money can do these things.
Spending money used to mean exchanging gold and silver.
For much of history, the value of a coin was based on the precious metal it was made from. Today coins are made from cheaper and more durable non-precious metals. Their status as money is decided by the government.
1699 Banknote (1699) by Bank of EnglandBank of England Museum
Paper money began as receipts for gold or silver that had been deposited with bankers. Since people were used to handling coins made of precious metals, it took time for people to trust banknotes.
Today, money doesn’t even have to be something we can physically hold.
Does cash have a future?
Piggy Bank (20th century)Bank of England Museum
Many question the future of cash.
In 2011, 55% of payments were made in cash. This dropped to 15% in 2021 during the Covid-19 pandemic and 14% in 2022.
Some suggest cash use will drop to 7% by 2032
However, many people prefer to use cash and others rely on it entirely. In 2022, 1.2 million UK people were ‘unbanked’ and depended fully on cash.
The Bank of England will make cash as long as people need it, making sure enough cash is printed and distributed around the country.
Can the tooth fairy go cashless?
Traditions around the world give cash as a symbol of care.
Passing down cultural traditions strengthens family and community links.
But it begs the question – do they lose a bit of magic if they go digital, or does going cashless make things easier?
We’re already seeing traditions adapt.
In Chinese culture, lucky red envelopes are given on special occasions. Red symbolises good luck and the envelope contains a gift of money. In China, several apps offer virtual red packets instead.
Many cultures share a tradition of pinning cash onto the clothes of the bride and groom during wedding celebrations. Some are switching to hand-written notes of well-wishes, with donations made by an app.
What is fintech?
Verifone P400 (2020-2022) by VerifoneBank of England Museum
Fintech is a combination of the words ‘financial’ and ‘technology.’ It describes technology which supports financial transactions. Paypal, Stripe, and Revolut are just some fintech companies that have changed the way we pay and manage our money.
Fintech is always innovating, and its possibilities are endless. Future innovations will meet needs we don't yet anticipate.
How do digital payments work?
Monopoly: Super Electronic Banking (2020) by Hasbro IncBank of England Museum
When you tap your card, your money zips from your account to the place you've spent it.
That payment is one of around 70 million credit and debit card payments made in the UK every day. And that number keeps growing.
The Bank of England settles transactions by moving money between the accounts held by financial institutions. About 775 billion pounds worth of payments are settled in this way every day. For the user, this happens seamlessly in the background.
Who decides how we pay?
Some people prefer to pay with cash, while others prefer card. But having the freedom to choose the method of payment that best suits you is important. Afterall, we’ve all had the frustration of getting to the till and realising you can’t pay in your preferred way.
Cash is instantly recognised and doesn’t need the internet.
But in the last 5 years, as cash payments have declined, nearly 15,000 cash machines have been taken away and more than 2,000 bank branches have closed.
In 2023, legislation was introduced in the UK to protect access to cash services.
Bitcoin cryptochip (gold) (2022-2023) by cryptochips.ioBank of England Museum
Increasingly people are interested in cryptoassests which appeal to some because they are outside the ‘mainstream’ banking system. Right now, however, cryptoassets aren’t widely accepted or easily transferrable from one person to another, so they can’t really be considered money.
Regardless of your preferred payment method, small everyday choices, like how to pay for our morning coffee, add up to influence the economy. The future of money is being shaped constantly, one transaction at a time.
The Future of Money
An exhibition by the Bank of England Museum
28 February 2024 - September 2025
For more information and additional resources: https://www.bankofengland.co.uk/museum/whats-on/the-future-of-money
Acknowledgments:
Curator: Jennifer Adam
Collections Management: Eleanor Paton
Digital content: Chloe Bazlen
Exhibition and project management: Kirsty Parsons
Photographer: Ian Lillicrapp
With special thanks to:
Colleagues throughout the Bank of England, in particular the Exhibition Engagement Group and Isabel Lee
