Money, payments and spending

Find out about how money is created and used, and how payments work.

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What is money?

Feathers, shells and even teeth. Money has taken many forms over time.

How is money created?

Most of the money in the economy is created by banks when they provide loans. 

How has money changed over time?

How we pay for things, and even the concept of paying, have developed over 11,000 years.

Build your knowledge on payments

How do card payments work?

Whether you’re buying groceries or a laptop, paying by card only takes seconds. Here’s how the money gets from A to B.

Financial market infrastructures – what happens when you pay?

There’s a network of systems that make payments possible. These are known as financial market infrastructures – or FMIs for short.

Will cash die out?

Cash remains popular despite the rise of contactless cards and other new payment methods.

What are stablecoins and how do they work?

Stablecoins are a form of digital asset that can be used to make payments.

How much do we spend during the festive season?

An average household in the UK spends more than £700 extra in December than in other months.

Build you knowledge on banknotes

 

Why are new banknotes made of polymer?

Our new banknotes are made of polymer because it is cleaner, safer and stronger than paper.

How do we know how much money to print?

We mostly print money to replace old, worn-out banknotes. But it’s also up to demand.

How much is a banknote worth?

While rare serial numbers often generate interest, banknotes will only ever be worth their face value to us.

Build your knowledge on the digital pound

 

What is the digital pound?

The digital pound would be a new type of money issued by the Bank of England alongside cash.

What is CBDC?

CBDC stands for central bank digital currency. It’s digital money a country’s central bank can issue alongside cash. If we introduced one, we’d call it the digital pound.

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1. Why are interest rates high and how quickly might they fall?

2. What are interest rates?

3. What will happen to inflation?

4. What is legal tender?

Other topics

Learn about the economy

Inflation and interest rates

Banks, borrowing and saving

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