Pound sterling

The story

Sterling did not begin with a pound coin. English accounts used pennies and larger reckoning units centuries before such a coin existed. The Royal Mint Museum traces the system’s background to the Frankish kingdom and identifies William I’s reign with a consistent 240-penny pound. Earlier English shillings varied, so the familiar twenty-shilling pound cannot simply be imposed on every early record. ^{[1] [2] [4]}

Changes in metal and convertibility altered the system without creating a new pound each time. Newton’s 1717 report helped bring the guinea’s valuation to 21 shillings. The Bank of England’s obligation to pay notes in gold was suspended during 1797–1821; the 1925 arrangements later provided for gold-bullion purchases rather than ordinary redemption in gold coins. ^{[5] [6] [7]}

Britain left the gold standard in September 1931. Decimal Day, February 15, 1971, changed the subdivision from 240 old pence to 100 new pence while leaving the pound itself intact. This distinction explains why the account unit continues across very different coins, notes, and monetary standards. ^{[8] [3]}