I wrote about the nature of money earlier. I know, two blogs in one day! The Bank of England issues notes and the Royal Mint issues coins; this is money. The government also issues bonds and they are paper and valuable and so just as good as money and can be exchanged for money. Originally, money was gold and silver and both gold and silver can still be exchanged for money. Even private companies can now print their own money in the form of vouchers and even make electronic money in the form of vouchers.