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Three Tenners

Collectors and vending machines at the ready. Literary legend, the Jane Austen tenner, marks the latest refresh of our ‘paper’ currency. But in a digital age, why are we bothering?

Next week, on 18th July, the Bank of England will mark the 200th anniversary of Jane Austen’s death, by unveiling the new £10 note featuring the renowned writer at Winchester Cathedral. The new polymer based £10 note will be issued in September 2017 and the Bank has already printed more than 275 million notes ahead of the formal launch.

Oddly, in a digital age with the rise of electronic payment methods, the value of notes and coins in circulation in the UK continues to grow steadily! Currently standing at some £80bn, this has increased by nearly £10bn over the last two years.

What does the future hold?

Well, South Korea has recently started a trial which could result in it removing the country’s smallest denomination coins from circulation. Instead of accepting small change from purchases, consumers will instead be able to deposit the amount onto prepaid cards. Some of South Korea’s major convenience stores are taking part in the trial.

The Bank of Korea says that customers will no longer have to carry loose change in their pockets. A recent survey of South Korean consumers suggests that two-thirds don’t carry coins, while half of those surveyed supported plans for a coinless society. Apart from the convenience to consumers, the Bank of Korea could also benefit as it estimates the cost of minting coins works out at about £37m a year.

Will the UK follow the South Korean’s lead? Certainly, more of us are paying for goods and services with smartphones or using contactless payments. For companies, this should produce helpful cost savings as less physical cash needs to be handled. Although it would appear that, for now, cash remains king!

 

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