Borders MP Michael Moore has said that the currency paper published by the UK Government today "clearly shows that we are better together".
“The currency paper published today clearly shows that the current system is the best for Scotland and the rest of the UK when compared with the other options.
“The crisis in the eurozone, has shown that a formal sterlingzone, as proposed by the SNP, would be extremely challenging to sustain without close fiscal integration.
"Such an arrangement seems to defeat the purpose of independence and would rob Scotland of control over its currency and important financial levers.
“In contrast, the current system has brought economic benefits to all parts of the UK because taxation, spending, monetary policy and financial stability policy are co-ordinated across the whole of the UK.
"This means that economies of Scotland, Wales, England and Northern Ireland are all taken into account when policy decisions are made. This would no longer be the case for Scotland if we were to break away from the UK.
– Michael Moore MP, Berwickshire, Roxburgh and Selkirk, Lib Dems
Scottish First Minister Alex Salmond, speaking to BBC News 24, accused the Chancellor of "political sabre-rattling".
This is a Tory Chancellor trying to scare people in Scotland, trying to stop them voting for independence.
But the day after a resounding Yes vote in the referendum, when people sit down and start to negotiate in the best interest of the people of Scotland and the rest of the United Kingdom, he will sing an entirely different tune."
It's in everyone's interests to have a currency area after independence - it's in the interests of Scotland, it's also overwhelmingly in the interest of the rest of the United Kingdom.
– Alex Salmond, Scottish First Minister
He said that was for the "very simple reason that huge Scottish resources such as oil and gas would continue to protect the sterling balance of payments"
Speaking in Glasgow Chancellor George Osborne said, "the conclusion is clear, the pound we share works well. The saying goes - if it ain't broke don't fix it, but I say, if it ain't broke don't break it."
He added, "I want the best for Scotland and for all our United Kingdom. We're better together."