The problem with using the pound (or any currency) without direct links to the Bank that issues it is quite complex;JASV8S wrote:As far as I am aware Scotland could continue to use sterling as a currency and Westminster could not stop that, but there would be no fiscal autonomy for Scotland and that is where the argument about sharing the pound is based. If Westminster refused to share the pound then Scotland would continue to use it until phasing it out after introducing a new currency. The only plan B. In fact Scotland could continue to accept the pound as legel tender to make it easy for the rest of the UK to transact whilst visiting - similar to some other countries.
There are other currencies out there and it was not that long ago there were many different ones in Europe without any real issues. I just think too much of a big deal is being made of this as a show stopper.
1. If you continue to use the UK pound without a Bank directly backing it and then start running out of it, you can't issue any more, or even borrow any more as you don't have responsibility for it.
2. You create an unground illicit currency with a two tier pricing structure based on your actual legal tender and whichever you are 'borrowing'
3. Who underwrites your Government debts and in which currency? If the Traders in your country prefer the borrowed currency they're very unlikely to use, pay tax on or favour using the legal tender.
If you don't believe any of this then you haven't travelled to any of the countries that struggle with their own currency value and then have an underground US Dollar currency market which further destabilises the legal tender.