Our eyes were caught recently by a graphic produced by Visual Capitalist on the oldest currency still in use and trading today. The subject prompted FaithInvest's Trish Groves to reflect on the age-old relationship between faiths, finance and values.
In the 19th century, the Industrial Revolution transformed how businesses in the UK operated. Production grew exponentially, and for investors such as the Cadbury family, profits soared. But life was grim for families who laboured six gruelling days a week in the hot, gloomy factories.
The Cadburys, a Quaker family, did things differently. Looking at production through the lens of their faith, they were horrified. In one of the first and best examples of faith-based investing, they set about creating a model village, with comfortable homes, schools for the children, and better working conditions in the factories.
The village of Bourneville became a shining example of how labour and capital could work together. Naysayers at the time said this experiment would fail, but the Cadbury brand has already been in existence for nearly 200 years and is still going strong.
When we look at the history of investment and finance, we sometimes forget that human-created systems such as currencies are often short-lived. Indeed, the average lifespan of a fiat currency (one that is not backed by a physical commodity, such as gold or silver, but by the government that issues it) is only 35 years.
Within the last century, currencies have been wiped out by hyperinflation, such as the German Mark, the Bolivian Peso and the Zimbabwean Dollar. Investing in cash is traditionally seen as a ‘safe bet’ and there are 180 recognised fiat currencies in the world today. How many of these will still be around in 2050?
Thankfully, there are examples of longevity. A recent graphic from Visual Capitalist revealed that, of the most resilient currencies still in circulation, the oldest dates back to the 8th century. More about that later.
Many of the world’s faiths have a longer lifespan than most currencies, most businesses, and pretty much every investment ever created. Collectively, faiths have been described as 'the third-largest economic power on Earth' , so they clearly know a thing or two about how to survive financially in the long-term. What can we, as faith-based investors, learn from this?
Profit, faith or both?
What can seem like a great investment opportunity historically may ultimately fail because the idea is based on short-term profits rather than long-term values. For example, looking at the following examples of industry innovations which generated a great deal of excitement at the time, would any of them be considered a good investment for a faith-based asset owner today?
Tulip mania of the 1630s
Child labour to increase worker numbers during the Industrial Revolution
Coal-fired generators to power steelworks and increase production of guns (having launched the Industrial Revolution on the back of coal, the UK has just closed its last operating coal power plant)
Bonded labour and indentured employment, for example, in the garment sector
These are extremes, of course, but when you begin to look at an investment portfolio through a faith lens, as the Cadbury family did nearly 200 years ago, what emerges is nothing less than a new paradigm for faith-consistent investing.
For centuries to come
For faith-based investors, who think in terms of sustainability across the centuries, this question may well be moot. By exploring their own beliefs, teachings and values, they can discover for themselves which investments have the most potential to fund their mission and express their values for centuries to come.
Faiths existed long before economics, surviving despite – and perhaps even because of – the economic uncertainties throughout the centuries. When everything else is lost, faith is the fallback currency that people turn to – to rediscover their values to rebuild their future. The first step is to learn more about faith-consistent investing.
So what is the oldest currency?
To answer the question of what is the oldest currency in the world that is still in use today, it is the British Pound, which dates back to around 775 AD, during the Anglo-Saxon period, when silver pennies were first minted in what is now England.
The pound sterling became the official currency of England in the 12th century under King Henry II, with one pound originally representing a pound of silver.
The next oldest currencies still in use today are:
Serbian dinar (1214)
Russian rouble (13th century)
US dollar (1785)
Haitian gourde (1813)
Find out more
Learn more about the essentials of faith-consistent investing
Visual Capitalist is dedicated to making the world’s information more accessible. Read its article on the 10 oldest currencies in the world.