Pound Sterling, Scottish Pound or the Euro?

What currency will us Scots be using if our
country becomes independent?

Tomorrow the UK's Chancellor of the Exchequer, George Osborne, is expected to rule out any currency union between an independent Scotland and the rest of the United Kingdom. He hasn't made his expected speech yet in the Scottish capital, yet the political reaction towards this expected move has gone into overdrive.

It leads anyone to ask the question as to what kind of money we'll all be having in our pockets north of the border if Scotland approves of independence. What amazes me especially is as to why Yes Scotland have never committed to any plans to form a brand new and distinctive Scottish currency. Let's not forget that the Republic of Ireland had the Irish Pound for a long time up until 2002.

I don't see an independent Scotland joining the Euro anytime soon. In all honesty, the whole issue over prospective membership of the European Union is another ball game of it's own. And I cannot see any move towards the Euro being a popular one amongst fellow Scots either. If George Osborne goes ahead and confirms any ruling out of a currency union, then he cannot really be blamed by supporters of the union for taking such a position as Scotland would no longer form part of the United Kingdom. In fact, he is brave to declare such a position just a few months before the vote in September. Because, potentially, he could end up scoring a spectacular own goal.

Scots value Sterling a lot. Anyone who dismisses the idea of an independent Scotland will not be swayed one way or another. But those who do support a vote towards independence will, without doubt, be totally infuriated. And I suspect that those who aren't sure of what way to vote may view the Chancellor's position as antagonistic and one that could give a negative impression of how Scotland might be dealt with in future. It is worth noting though that Sam Bowman from the Adam Smith Institute has stated today that Scotland may not even need the approval of a Westminster Government to use Sterling.

Time will tell and, without doubt, both sides of the independence debate will be having a war of words over this particularly important issue. It must also be remembered that business will most definitely and generally take a strong position on the currency as they will be affected by any potential change. In fact, we will all be affected.