You're standing at a self-checkout in a Heathrow airport terminal, staring at a handful of coins that look like they belong in a museum or maybe a pirate chest. You've got chunky gold-and-silver ones, tiny copper bits, and notes that feel more like thin plastic than paper. So, what is United Kingdom currency called? Most people just say "the pound." Simple, right? Well, sort of. If you want to be technical—and the Bank of England definitely does—the official name is the pound sterling.
It’s the oldest currency in the world that’s still being used today. That's a massive legacy for a little island. When you hold a £20 note, you aren't just holding lunch money; you're holding a piece of a financial system that survived world wars, the rise and fall of empires, and the invention of the internet.
The "sterling" part of the name helps people differentiate the British currency from other pounds used around the globe, like the Egyptian pound or the Lebanese pound. If you're talking about the currency markets, you’ll hear traders call it "cable" or "sterling." If you’re in a pub in East London, you might hear someone ask for a "quid." It’s all the same thing. One pound is made up of 100 pence. A single unit is a penny. You won't find many "pennies" in your pocket that can actually buy anything these days, but they still exist, cluttering up jars across the UK.
Understanding the basics of what is United Kingdom currency called
The ISO code for the currency is GBP. You'll see this on every currency exchange board from New York to Tokyo. The symbol is £. It’s a fancy, stylized "L." Why an L? Because it stands for libra, the Latin word for scales or a pound weight. It all goes back to the Roman Empire, which is pretty wild when you think about it. Basically, a pound of silver was the original unit of value.
Money in the UK isn't just issued by one place, which confuses the heck out of tourists. The Bank of England handles the big stuff in England and Wales. However, banks in Scotland and Northern Ireland—like the Royal Bank of Scotland or Bank of Ireland—issue their own banknotes. These are technically legal currency, but they aren't "legal tender" in the strictest sense of the law, even in their own countries. If you try to spend a Scottish £20 note in a small shop in Cornwall, the cashier might look at you like you're trying to pay with Monopoly money. They are allowed to reject it. It’s annoying, but it’s a quirk of the British system.
👉 See also: Why the Man Black Hair Blue Eyes Combo is So Rare (and the Genetics Behind It)
The notes themselves have changed a lot lately. Between 2016 and 2021, the Bank of England phased out paper money entirely. Now, everything is polymer. It’s a fancy type of plastic. These notes are way harder to counterfeit and they don't turn into a soggy mess if you accidentally leave them in your jeans during a laundry cycle. They also feature different historical figures. For a long time, Queen Elizabeth II was the only face you’d see, but since 2022, King Charles III has been appearing on new prints.
The Quid, the Bob, and the slang you actually need to know
If you want to sound like a local, stop saying "Great British Pounds." Nobody says that. Use "quid." It’s singular and plural. One quid, ten quid, fifty quid. The origin is a bit murky, but many linguistic experts believe it comes from the Latin phrase quid pro quo, meaning "something for something."
Then you have the more colorful Cockney rhyming slang. A "pony" is £25. A "monkey" is £500. Why? Because the 500-rupee note in British India supposedly had a monkey on it, and soldiers brought the term back home. A "score" is £20. If someone asks you for a "tenner," they want £10. If they ask for a "fiver," they want £5.
It's also worth noting that the UK is a very "tap and go" society now. In London, many buses and cafes don't even take cash anymore. You just tap your phone or your contactless card. But if you’re heading into the countryside or visiting a tiny village market, those physical coins—the 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2—are still vital.
✨ Don't miss: Chuck E. Cheese in Boca Raton: Why This Location Still Wins Over Parents
The weird history of the Pound Sterling
The history of what is United Kingdom currency called is actually a bit of a rollercoaster. Before 1971, the British money system was a total nightmare for anyone bad at math. It was called "decimalization" when they finally fixed it. Before that, there were 12 pence in a shilling and 20 shillings in a pound. That meant 240 pence made a pound. Imagine trying to split a dinner bill with that logic.
There were also coins like the "half-crown" and the "sixpence." Honestly, it’s a miracle the economy functioned at all with that level of complexity. When the UK switched to the 100-pence-to-a-pound system on February 15, 1971 (known as Decimal Day), some people actually protested. They thought they were being cheated.
Nowadays, the value of the pound fluctuates against the dollar and the euro based on everything from interest rates to political drama. Since the Brexit referendum in 2016, the pound has had a bit of a rough ride, losing some of its historical "strong" status, but it remains one of the most traded and reserve-held currencies on the planet. It’s a heavy hitter.
Why the UK never joined the Euro
You might wonder why the UK didn't just ditch the pound for the Euro like France or Germany did. It was a massive political debate for decades. The UK actually had an "opt-out" clause. Economists like Gordon Brown (who was Chancellor at the time) set up "five economic tests" that had to be met before the UK would join. Spoilers: they were never met.
🔗 Read more: The Betta Fish in Vase with Plant Setup: Why Your Fish Is Probably Miserable
Keeping the pound allowed the Bank of England to set its own interest rates. This gave the UK more control over its own inflation and growth. For many Brits, the pound is also a symbol of national identity. Losing the Queen’s (and now the King’s) face on the money felt like losing a piece of Britishness. Even though the UK is no longer in the European Union, the pound remains a fierce independent.
Spending your money: Practical tips for travelers
If you're visiting soon, don't go to those "Bureau de Change" kiosks at the airport. They will absolutely rip you off with terrible exchange rates. Use an ATM (called a "cash machine" or "hole-in-the-wall" over there) once you arrive. You’ll usually get a much better rate from your own bank.
- Always choose to pay in GBP. When a card machine asks if you want to pay in your home currency or the local currency (Pounds), always pick Pounds. If you pick your home currency, the merchant's bank chooses the exchange rate, and they never choose one that favors you.
- Check your notes. As of 2024, old paper notes are no longer legal tender. If someone tries to give you a paper £20 or £50 note, don't take it. Only the "plastic" polymer ones are valid in shops. You can still exchange old ones at the Bank of England, but it’s a hassle you don't want on vacation.
- The £1 coin is distinct. It’s 12-sided. It replaced the old round one in 2017 because the old ones were being faked too easily. If you find a round £1 coin in an old suitcase, it’s a souvenir now, not money.
- Tipping isn't like the US. You don't need to tip 25%. In restaurants, a 12.5% "service charge" is often added automatically. If it’s not, 10% is plenty. You don't tip in pubs if you’re just buying a round of drinks at the bar.
The future of the British Pound
We're moving toward a "Digital Pound." The Bank of England is currently researching a Central Bank Digital Currency (CBDC), which people are jokingly calling "Britcoin." This wouldn't replace physical cash, but it would be a digital version of the pound for online transactions.
There’s also the ongoing transition of the imagery. It takes years for coins and notes to cycle through the system. You’ll see King Charles III and Queen Elizabeth II co-existing in wallets for the next decade at least. It’s a strange, lingering transition that reflects how the UK often moves: one foot in the deep past, and one foot trying to step into the future.
Actionable Steps for Managing UK Currency:
- Download a conversion app: Use something like XE or OANDA before you land so you have a real-time sense of what a "quid" is actually worth against your home currency.
- Get a travel-friendly card: Sign up for a card like Revolut, Wise, or a no-foreign-transaction-fee credit card. Tapping your phone (Apple/Google Pay) is the standard way to pay for everything, including the Underground (the Tube).
- Verify your banknotes: If you are handed Scottish or Northern Irish notes, feel free to ask for Bank of England notes instead if you are traveling south. It avoids potential headaches in smaller English towns.
- Empty your pockets: Coins are hard to exchange back once you leave the UK. Spend your 1p and 2p bits at the airport or donate them to the charity boxes usually found near security.
The pound sterling is more than just a way to buy a pint of lager or a ticket to a football match. It's a survivor. From its roots in silver weights to its plastic, high-tech present, it remains a core pillar of global finance. Knowing what it's called is just the start—understanding how to use it without getting hit by fees is where the real expertise comes in.