Pound Scots was the national unit of currency in the Kingdom of Scotland before the country entered into a political and currency union with England in 1707. Despite the Scottish Pound no longer being an independent currency, Scotland's three largest national clearing banks, the Royal Bank of Scotland, the Bank of Scotland and the Clydesdale Bank, still print paper Pound Sterling notes for domestic circulation within Scotland.

Scotland also has the unusual situation whereby paper banknotes are not legal tender in Scotland. Individual banks issue 'promissory notes' - essentially cheques made out from the bank to 'the bearer', as the wording on each note says.

See British banknotes