Northern Ireland funny money in the rest of the UK

Billy86 wrote: »

Is there any actual reason for this, beyond the typical English mentality of the rest of the UK just being 'along for the ride'? It seems pretty ridiculous to have not been addressed be honest, unless it is there for good reason.

If I remember right, it goes back to the days when coins were minted from valuable metals (gold/silver) and were the only legal form of currency.

The notes issued in Scotland and NI are "promissory" notes, an IOU from the bank in effect. The bank promises to pay the bearer £x sterling (once upon a time in gold or silver coinage) on demand.

These notes were passed between people to settle debts and paper currencies were born. A paper banknote in the UK is a bit like a cheque that can be passed between multiple people.

You take a Scottish or NI banknote to the bank that issued it and they must give you the equivalent in "legal tender" although nobody does that anymore!