The Scottish Pound
On day one of Scottish independence, Scotland will still use Pound Sterling. This will be for a transitional period until Scotland achieves certain economic targets. These targets will be monitored by a new Scottish Central Bank (SCB). A Scottish version of the Bank of England (BOE).
Using Sterling after independence is not ideal but it is a necessary one. During this short period Scotland will not have access to financial help from the BOE should an unexpected event happen. But we will be able to raise extra money in the same way as any independent State. We also won’t have any say over monetary policy as there would be no formal financial agreement between Scotland and the continuing United Kingdom. But it will give time for the new SCB and Scottish Government to shape the new, independent economy of Scotland.
Once met, the criteria will be the start of the new “Scottish Pound” replacing the British one. The transition will likely be a series of staggered events. The printing and pressing of the physical money will likely happening while we still use Sterling. On a set date the Scottish Pound will officially launch and Scots will find themselves with options.
To begin with they can keep the British pounds in their bank accounts. Once earned a new second amount will appear denoting the balance of Scottish pounds that they have. At this point it will be up to you if you want to immediately switch over to the Scottish Pound. Or you could have a bit of both, you can even keep all your money in Sterling if you want. Shops, websites Restaurants, gyms and the company you work for will all accept the British pound alongside the Scottish one.
However you will start to see the Scottish Pound being used more for instance you may be paid in the Scottish Pound despite your employer allowing customers to pay in Sterling. Coin operated vending machines will start switching to the new currency and things like this will become more common leading up to a “switch date”. At this point the Scottish Pound will become the only day to day currency used in Scotland.
Don’t worry about the British money in your bank accounts you will have plenty of time to change over. You can even keep a balance of money as Sterling, lots of people the world over have multiple currencies in their accounts, it’s perfectly normal. But individual banks may start to charge you to convert currency once the switch to Scottish Pounds is complete much like when you buy currency to go on holiday or purchase an item from a website that uses say US Dollars. The Great British Pound will from here on be a foreign currency in Scotland.
A new currency isn’t something to fear. If you want a loaf or a pint of milk you will hand over pounds or swipe the card machine as you always have done. You will still earn your pay as before and that one more pint down the pub will still make you miss the bus home.