If iScotland adopts Sterlingisation what would that mean on a day-to-day basis for the wo/man in the street? Would Scots still use and spend the English pound or just use the Scottish notes? Would the Scottish pound (possibly) be considered to be worth less - should Scots be stockpiling English notes?
Juice
Sterlingisation is Scotland's only real option to be honest - but it's hugely risky.
Sterlingisation is effectively using sterling 'informally' – but it is hard to imagine financial markets smiling on such an arrangement. A lack of formal commitment to a CU could lead to capital flight from Scotland, tightening financial and monetary conditions.
The theory is that the yes camp are relying on the threat to adopt sterlingisation, which would have knock-on effects for the rest of the UK, to force Westminster to give ground. The hope would be that by choosing sterlingisation, the Scottish government could force some degree of cooperation from the UK government, resulting in something that looked more akin to a currency union.
It's a theory, but an awful lot of political capital would have to be swallowed by both sides for such an agreement to come to pass. The process would also be messy, very messy. It relies on the existence of a currency crisis to force a resolution, there would be huge after-shocks and ramifications.
Salmond can threaten it - but if he adopts it, he threatens to bring down not just Scotland but the rest of the UK to a point that it would be virtually impossible to recover from. Not the best way to get your new independent country off to a flying start - destroying not only yourself but your larger and more powerful neighbour with whom you do 70% of your trade. You can see from the Guardian polls that it's not just rUK politicians and economists who are getting mightily pissed off with the Scottish Governement's threats and refusal to address the currency issue. It's the man in the street. Taking Scotland down is one thing. Taking the rest of us down with you is quite another.
(I'm using 'you' referring to in regard to the 'Yes' campaign by the way).