New banknotes officially enter circulation, making cash the preferred form of payment

Today marks a significant milestone as banknotes featuring King Charles III have officially entered circulation, alongside those of Queen Elizabeth II. The portrait of King Charles will be seen on £5, £10, £20, and £50 notes, with no other alterations to the design.

With over 4.6 billion Bank of England notes amounting to £82 billion, the new banknotes will gradually make their way into circulation. Bank of England Governor Andrew Bailey expressed excitement about the introduction of the King Charles banknotes, highlighting the historic nature of the change in sovereign representation on the notes.

Graham Mott, director of strategy at ATM and cash access network Link, emphasized the continued popularity of cash usage, with over 70% of adults still using cash at least once every two weeks. As the King Charles III banknotes enter circulation, they will eventually be accessible through all cash machines, replacing worn out notes.

The introduction of these new banknotes reflects the commitment of the Bank of England to provide cash for as long as there is public demand for it, recognizing the importance of cash in daily transactions despite the increasing prevalence of online payments and contactless cards.