According to recent commentary by former Brexit Minister Jacob Rees‑Mogg on his YouTube channel, the Bank of England risks shaking public faith in the pound if it presses ahead with new banknote designs.
He argues that confidence in fiat money is built on shared belief rather than intrinsic worth. His warning comes as the Bank plans to roll out notes featuring modern images in place of familiar figures.
History Of Hard Money
Rees‑Mogg traced paper currency back to 11th‑century China, when early notes first appeared. He pointed out that from 1660 to 1914 the British pound’s buying power barely budged, thanks to its link with gold.
By contrast, unbacked paper has a track record of inflation. He said that governments printing more money serve as a hidden tax on savers and bondholders.
The Illusion Of Value
Based on reports, Rees‑Mogg held up a modern coin alongside a silver shilling from Charles I’s reign. He noted that older coins kept value through their metal content, while today’s base‑metal pieces rely entirely on trust.
He warned that “believing paper money has inherent value is a dangerous illusion,” since notes and coins carry no worth outside the system that accepts them.
Bitcoin And Gold Compared
Rees‑Mogg drew a line from gold’s long history to Bitcoin’s fixed supply. Gold grows by roughly 1–2% a year through mining, and Bitcoin cannot exceed 21 million coins.
He suggested this scarcity gives both assets “real value.” Bitcoin’s decentralized protocol leaves no room for extra tokens, unlike fiat, which governments can flood with fresh notes at will—especially after the 2008 financial crisis.
Psychology Of Design
He argues that the look and feel of money matter. Replacing familiar monarchs with abstract art, he said, weakens continuity and may chip away at trust.
He warned that when confidence collapses, so does the currency, pointing to hyperinflation in Weimar Germany and Zimbabwe as grim examples of what happens when people stop believing.
Crypto Community Reaction
Based on social posts, many in the crypto world cheered his nod to Bitcoin’s “hardness.” While Rees‑Mogg stopped short of calling crypto a better alternative, his focus on scarcity echoed long‑standing arguments from digital‑asset advocates.
His comments add a mainstream voice to debates over whether Bitcoin can serve as a hedge against inflation and central‑bank overreach.
Rees‑Mogg’s warning reminds readers that money’s strength goes beyond design. Day‑to‑day trust depends on how well the economy performs and how clearly central banks communicate.
Featured image from Bitpapa, chart from TradingView
