Yesterday was the Bank of England’s 321st birthday. Created on 27th July 1694, the Bank – as it’s referred to in shortened form – is one of the oldest Central Banks in the world. It is not the oldest though. That accolade falls to the Central Bank of Sweden, the Riksbank, created in 1668, although it was preceded by the foundation of the modern Central Bank system in Amsterdam, where the Bank of Amsterdam was formed in 1609.
The original role of the Banks were to overcome the insecurities of transacting with other cities and nations. This method had been pioneered by the Knights Templar, but the formal opening of Central Banks meant that new forms of currency could be trusted because they were backed by cities or nations.