The UK is on track to have one of the lowest levels of counterfeiting in Europe as the Treasury says it has successfully stopped its currency from being used for money laundering.
The Treasury said the central bank will soon begin issuing more than £20 billion of new notes that will be worth around £50 billion, which will be enough to buy back £300 billion worth of UK banknotes over the next 10 years.
The new notes will be used to pay for goods and services and to pay down debt, the government said.
The currency will be backed by the Bank of England and the Bank for International Settlements, which provide backing for currencies.
The move is an unprecedented effort to stamp out the money laundering, drug-trafficking and other criminal activity that is so rampant in the UK.
It will be a massive boost for the UK economy and will help reduce the debt burden of the public purse, said Mark Carney, the deputy governor of the Bank.
But the British currency is hardly immune to its own kind of problems.
In fact, the UK is one of only a few countries that can actually print enough money to buy enough goods and service to keep its economy running for an extended period of time, according to the European Central Bank.
The rest of Europe is stuck with low-growth, low-wage economies.
And while the Treasury has been doing a great job of stopping counterfeiters from stealing billions of dollars, it is still facing significant challenges in preventing counterfeiting and making money available for businesses, consumers and households.
“The UK’s currency is still one of its most important economic assets and we are now seeing the first signs of the next chapter, with this announcement and this move,” said Paul Murphy, deputy chairman of the House of Commons finance committee.
Last year, the Treasury announced plans to print an additional $10 billion of the new notes each year.