50 Pence (World War II) – Gibraltar

In 2025, Gibraltar's currency situation remains defined by its unique political and economic status as a British Overseas Territory with deep practical ties to neighbouring Spain. The legal tender is the Gibraltar pound (GIP), issued by the Government of Gibraltar and pegged at par with the British pound sterling (GBP). Sterling notes and coins also circulate freely and are accepted interchangeably, creating a de facto dual-currency system where the UK pound provides underlying stability and confidence. This peg is a cornerstone of financial policy, crucial for the territory's banking, insurance, and online gaming sectors, which rely on seamless integration with the UK's financial system.

However, the post-Brexit landscape continues to shape daily monetary reality. While sterling remains strong, the Gibraltar pound is not readily accepted in Spain, making the euro a practical necessity for many residents and businesses engaged in cross-border trade, employment, and consumption. This has led to a tri-currency reality on the ground, with euros widely used and accepted in many retail outlets alongside the official sterling/Gibraltar pound. The economy effectively functions with pockets of dollar usage in shipping and finance, euros for regional interaction, and sterling for domestic and UK-linked affairs.

Looking ahead, the key discussions in 2025 are less about altering the official peg—which is considered immutable—and more about digital innovation and payment efficiency. The government and financial institutions are focused on enhancing digital payment infrastructures to streamline transactions between the different circulating currencies. Furthermore, there is ongoing monitoring of any potential long-term shifts in the use of cash versus digital money, particularly as the territory seeks to modernise its economy while navigating its complex geographical and political position between the UK and the EU.