The British decimal currency system was introduced on February 15, 1971, replacing the previous pound, shilling, and penny system. In this new system, the basic unit is the pound, which is divided into 100 smaller units called pence. This change aimed to simplify transactions and make calculations easier for the public. Before decimalization, the pound was divided into 20 shillings, with each shilling containing 12 pence. The transition to decimal currency was part of a broader modernization effort in the United Kingdom, making it more compatible with international currencies and trade practices.