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The Bank of England has announced that banknote demand for its notes is increasing.

In an article released today, the Bank of England confirms that banknote demand is growing faster than nominal GDP. Banknotes with an estimated value of £62.6billion are thought to be in circulation, resulting in the equivalent of £1,000 in banknotes in circulation for each person in the United Kingdom.

However, the bank advises that only half of the banknotes in circulation are used within the UK for “legitimate” purposes such as in payment transactions or by people “hoarding” their banknotes, with the remainder thought to be held overseas or being used illegally in the “shadow’ market.

Read more from the Bank of England’s Quarterly Bulletin here.

Watch this video to hear the Bank of England’s views on banknote demand and the future of cash:

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