Cash is king: Charles III banknotes enter circulation for first time in UK

British banknotes bearing the image of King Charles III entered circulation for the first time on Wednesday, nearly two years after he succeeded his mother Queen Elizabeth II.

The four banknotes with the king's portrait on the front carry values of £5 ($6.4), £10, £20 and £50 and will be used alongside those bearing the image of Elizabeth, who died in September 2022. Coins bearing Charles's head entered circulation in December 2022.

‘Historic Moment’

The updates come as Britons increasingly use physical and online bank cards, rather than cash, to make payments. But Bank of England (BoE) governor Andrew Bailey called it "a historic moment," with the late queen having served a record 70 years on the throne. "We know that cash is important for many people, and we are committed to providing banknotes for as long as the public demand them," he added.

"This approach is in line with guidance from the Royal Household, to minimise the environmental and financial impact of this change," the BoE said. "This means the public will begin to see the new King Charles III notes very gradually."

People queue outside the Bank of England on the day the new notes featuring the King's portrait are being issued in London. AP

Based on a photograph owned by the royal household and made available in 2013, Charles in late 2022 approved the final designs of the notes featuring his engraved portrait.

The new cash — made from polymer that has already been used to replace paper money in the UK since 2016 — will gradually replace the older notes.

Elizabeth was the first monarch to feature on British banknotes, in contrast to coins in England which have carried images of kings and queens for more than 1,000 years.

Cash usage has fallen sharply in Britain in recent years as consumers favour debit cards and other electronic payments.

According to the British Retail Consortium, cash accounted for more than half of transactions in shops in 2014, but had fallen to 15% by 2021 — partly due to COVID-19 restrictions — before rising to 19% in 2022.

"We are committed to providing banknotes for as long as the public demand them. Bringing these new notes into circulation is a demonstration of that commitment," BoE Governor Andrew Bailey said on Wednesday.

Britain's government passed legislation last year to require banks to ensure ready access to cash.

Agence France-Presse / Reuters