Pound sterling is the official currency of the UK, divided into 100 pence. Its name comes from high-quality "Sterling" silver. It makes up 4.2% of global currency reserves. A unified monetary system was introduced in England in 1158. Initially, one pound was 240 pence, but since 1971, it's 100 pence. In 1694, paper banknotes replaced metal coins. Early banknotes were like checks, with value written based on pledged gold or silver. To prevent counterfeiting, denominations were stamped from 1725 onward. During WWII, Nazi Germany counterfeited over 100 million pounds to damage the UK economy, making up 10% of all pounds in circulation. Today, the pound sterling is the fourth most traded currency and the fourth largest reserve currency worldwide.