George Osborne is "bluffing" when he insists an independent Scotland cannot keep the Pound, according to Scottish First Minister Alex Salmond.
But when speaking to ITV News Chief Secretary to the Treasury Danny Alexander accused Salmond of bluffing too, claiming he has no currency plan.
Both sides of the debate are now firmly entrenched, reports Martin Geissler:
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The chancellor now faces the prospect of forming a minority government or calling for a snap election.
The 73-year-old said a return is unlikely "given the politicised atmosphere that seems to have afflicted our set."
Chancellor Philip Hammond said the UK will make a financial proposal to the EU in the next three-and-a-half weeks.