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."
The SNP asserts that it would be in everyone's interests for an independent Scotland to keep the pound as part of a eurozone-style sterling zone.
But the Treasury analysis we are publishing today shows that is not the case. Let's stop speculating and look at the evidence.
Would the rest of the UK family agree to take that risk? Could a situation where an independent Scotland and the rest of the UK share the pound and the bank of England be made to work? Frankly it's unlikely because there is real doubt to the answers of these questions.
In other words the only way to be sure of keeping the pound as Scotland's currency is to stay in the United Kingdom.