What currency would an independent Scotland use?

On independence day Scotland would use the pound sterling.

This does not require any formal agreement with the Westminster government. Sterling has been the legal currency in Scotland for centuries and is internationally traded.

We then propose Scotland’s pound then become its own currency. This transition would take place as soon as it is in Scotland’s economic interests and with the agreement of the people of Scotland through their elected Parliamentary representatives. This process would be a careful, managed and responsible transition, guided by criteria and economic conditions rather than a fixed timetable. 

On independence an independent Scottish Central Bank would be established with oversight of monetary and economic conditions in Scotland and with responsibility for financial stability. 

The Scottish Central Bank would also report on the economic criteria and conditions for moving to a Scottish pound. This would be part of a wider process, drawing on independent advice to inform the decision by the Scottish Parliament on when to introduce the Scottish pound.

To avoid repeats of the 2008 ‘Credit Crunch’ and the chaos of Liz Truss’s premiership in 2022, an early priority following a vote for independence would be for the Scottish Government to work with the Scottish Central Bank to design an institutional model and a future approach to financial regulation that would be proportionate to the size and ambition of the financial services sector in an independent Scotland.

You can read more about the Scottish Government’s plans for currency in an independent Scotland in this paper: Building a New Scotland: A stronger economy with independence – Currency and fiscal policy.