Scotland To Face Currency Blues İf Chooses 'Yes'

Hours before polling stations open for a vote that could spell the end of Scotland's role in the United Kingdom, concerns are being voiced over what currency it would use in money markets.



Such fears are founded on the magnitude of financial assets in Scotland, which amount to around $907 billion according to figures from the London-based Investment Management Association.



An independent Scotland has four options for a new domestic currency - maintaining the pound within a currency union, continuing to use it without U.K permission, adopting the Euro or moving to a new currency - speculatively referred to as the "Scottie."



However each option is not without issue.



The U.K. government has completely rejected any suggestion of a monetary union, stressing that this would cause tremendous complications as it would be controlled by two different finance administrations. In response, Scotland could refuse to pay its $81.5-$146.5 billion share of the United Kingdom's public debt.



The option of utilizing sterling without the permission of the UK  - "Sterlinization" - would allow Scotland to maintain the currency unofficially until 2016, while continuing to negotiate.



Countries such as Montenegro and some Latin-American countries have put this practice to effect with the U.S. dollar without negotiating with America.



Although on paper the option of using the Euro seems attractive, the European Union may revoke Scotland's membership in the event of a "yes" vote.



With the strength of Scotland's financial sector, however, this is expected to be short term, the EU allowing the country back in after around two years.



The "Scottie" would be a last ditch option, new currencies needing time to gain market confidence.



Over 4 million voters throughout Scotland are expected to go to the polls tomorrow, the referendum threatening a union that has lasted for 307 years.



If the "yes" vote is successful, Scotland is not expected to entirely leave the UK until 2016, the Scottish National Party proposing March 26, 2016 as its Independence Day.




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