2 Crowns – Gibraltar

In 2024, Gibraltar's currency situation remains defined by its unique political and economic status as a British Overseas Territory. The official currency is the Gibraltar pound (GIP), which is issued by the Government of Gibraltar and pegged at par value to the British pound sterling (GBP). Sterling notes and coins also circulate freely and are accepted interchangeably with local issues, creating a de facto dual-currency system where the pound sterling serves as the anchor of monetary stability. Gibraltar does not have a central bank; its currency board system ensures local notes are fully backed by sterling reserves, maintaining confidence and a fixed 1:1 exchange rate.

The territory's financial framework is heavily influenced by its relationship with the United Kingdom and the European Union. Following Brexit, Gibraltar is no longer part of the EU's single market or customs union, though it continues to negotiate a new treaty with Spain and the EU to define future relations, particularly regarding border fluidity. This ongoing process creates an element of uncertainty, but it has not directly disrupted the currency peg. The Gibraltar pound is not an independent floating currency and its value is entirely derivative of sterling, meaning its international standing is tied to the UK's economic performance and monetary policy set by the Bank of England.

Looking ahead, the primary currency considerations for Gibraltar in 2024 revolve around digital innovation and economic diversification. The government has actively promoted Gibraltar as a fintech and blockchain hub, with a regulated framework for cryptocurrency and digital asset firms. While the traditional GIP/GBP system remains bedrock, there is growing institutional interest in the potential of Central Bank Digital Currencies (CBDCs) and blockchain-based payment systems. For daily transactions, however, cash (in both GIP and GBP) and electronic payments in sterling dominate, with the euro also commonly accepted in many retail outlets due to the high volume of visitors from neighboring Spain.