Recently, with an announcement as well as an unveiling at the National Portrait Gallery, the British Royal Mint announced that it would be updating the portrait of Queen Elizabeth II. Considering that this is an event which only occurs every 15 to 20 years- and has occurred 4 previous times for the current monarch- the interests of numismatists as well as the general population has been piqued. Beyond just collectors and typical users, a changing of the national medium of exchange gives us a chance to examine another of those words that many of us take for granted: currency.
Defined as the monetary system in use within a specified area, the word currency originates from the Latin verb curro (to run, flow, or circulate). Though it may initially be difficult to link the verb for running with a country’s monetary system, simply think of the circulation of a banknote.
As a medium of exchange to replace the barter system, currency provides a clear, concise, and mutually understandable means of exchange to assess value. In other words, regardless of your location in the UK, you can pay for your Costa Coffee in pound notes and coins instead of having to trade eggs, a knitted jumper, or semi-precious gemstones for it. Beyond individual usage, currency also allows for better and more widespread understanding of economic issues. For example, a reasonable gauge of economic is the Gross Domestic Product, or GDP, which measures the economic value of the economy: instead of just saying that more production is better, the value of currency allows people/institutions/the government to examine the economic values of each sector and act accordingly.
Considering currency’s role in the rise of the modern Western world, it’s no surprise that some of the titans of political and economic thoughts have written on it. The first written evidence in the English language, where the word currency was used in its meaning of a medium of exchange comes from John Locke. In his Second Reply (1699) to Mr Stillingfleet, Bishop of Worcester, he states that, “It is the receiving of them by others, their very passing, that gives them their Authority and Currency.” Adding weight to this word, Adam Smith in 1776’s Wealth of Nations I also mentions “the paper currencies of North America.” So, when you do first get an opportunity to see the new, updated portrait on a coin, along with admiring the design and craftsmanship, you might, for a moment, consider what that coin means and what it stands for.
