Scottish independence: SNP dismisses threat to banknotes as 'scaremongering'
....... The UK has shared a common currency for more than 300 years.
But a Treasury source said the responsibility of the Bank of England, as the central bank of the UK as a whole, for regulating the issuing of notes by commercial banks would have to be reviewed if Scotland voted for independence.
It said that the arrangement was a rare example where different notes are printed and accepted across the same currency area.
The Treasury argues it is because the Bank of England is formally responsible for regulating the issuance of notes by commercial banks that Scottish banknotes are worth as much as Bank of England banknotes.
....... The Scottish government said the existing situation relating to Scottish banknotes would remain in place within a post-independence currency union.
A spokesman said: "An independent Scotland will retain the pound. The UK government has stated that there is no legal bar to an independent Scotland having sterling as its currency and the evidence, including the views of world-leading economist Joseph Stiglitz, shows that it is in the best interests of both an independent Scotland and the rest of the UK to have a sterling zone."
The SNP's Westminster Treasury spokesman Stewart Hosie dismissed fears over Scottish banknotes as a scare story from the UK government.
He told BBC Scotland: "Every single Scottish note in circulation is fully covered by a Bank of England note or coins or assets held by the Bank of England, which guarantees its value, that would not change under a currency union."Full article
What I find interesting is that up until 1960 Scottish £1 notes were only worth 19s:6d (97.5p) in England and Wales, and Scottish notes were regarded with suspicion anyway, so travellers going south of the border always made sure they took only B of E notes with them - a habit which remained well into the 1980s - so obviously a currency union is a relatively new idea, although recent bank mergers mean that the only Scottish bank is the Clydesdale, although even it has been part of the National Australia Bank Group since 1987.