From Electrum to Sterling: A Brief History of Money

Summary

The episode traces the evolution of money from the first electrum coins minted in Lydia around 640 BC, through the early experiments with paper money in China and Sweden, to the rise of national central banks that backed notes with government reserves. It highlights how over‑issuance of paper led to inflation and fraud, prompting the shift toward trusted, state‑backed currency. The narrative then focuses on the development of the British pound sterling, established by Elizabeth I in 1560, its long‑standing pre‑decimal system, and its survival as the world’s oldest continuously used currency.