In the 1960s and 1970s, Britain imposed strict exchange controls to protect its economy, notably limiting the amount of currency individuals could take abroad. Travellers were restricted to just £50 in foreign currency plus a modest £15 in sterling when venturing overseas, a policy introduced by Harold Wilson’s Labour government to preserve dwindling foreign reserves and control the balance of payments. These controls were cumbersome and often sidestepped and symbolised a broader tension between personal freedom and national economic discipline — until Margaret Thatcher’s government lifted them in 1979, ushering in a new era of financial liberalisation.

Fast forward to today, and the evolution of digital currency — particularly central bank digital currencies (CBDCs) — presents a possible reimagining of such controls but with sharper precision. Unlike cash, digital currency is programmable: governments could potentially restrict how, where, and when money is spent abroad, enforce expiration dates, or even tailor financial rules to specific individuals. Current regulatory moves in the UK aim at safeguarding consumers and managing cryptoassets, but they also lay the groundwork for future tools of fiscal control. If history rhymed, tomorrow’s exchange restrictions wouldn’t involve counting banknotes at customs, but navigating lines of code embedded in the currency itself.