The Bank of England (BoE) has dismissed speculation that it had entered discussions with officials from the Scottish government over possible future monetary arrangements in Scotland, a bank spokesperson said on Thursday.
With the Scottish independence referendum scheduled for 18 September, BoE Governor Mark Carney on Wednesday announced that the disputes between the Scottish and UK governments over the future of the pound "could raise financial stability issues".
Banking experts and financial analysts have warned that a 'yes' vote could see billions of pounds being withdrawn from investment houses and banks north of the border by investors looking to protect their assets.
"The Bank notes the comments made by the Finance Secretary of the Scottish Government regarding technical discussions between officials of the Scottish Government and the Bank of England," the BoE said in a statement.
"To be clear, consistent with its statement in December 2012(1), the Bank of England has not entered into discussions with representatives of the Scottish Government about proposals for future monetary arrangements in Scotland.
"As the Governor said yesterday, the design of any changes to UK monetary and financial arrangements would ultimately be a matter for negotiation between the Westminster and Scottish Parliaments. The Bank of England will deliver whatever remit it is given," the note said.
"The Bank's position on the primary determinants of a successful currency union is set out in the Governor's speech, delivered in January 2014 in Edinburgh and in his subsequent testimony to the Treasury Select Committee of the House of Commons."
The news came only hours after Sir Donald Mackay, one of Britain's leading economists, said there was "nothing to stop" an independent Scotland using sterling with or without a currency union.
A former adviser to the UK government, Sir Donald told BBC Radio's Good Morning Scotland programme that Scotland should continue to use the currency even if Scotland was to become independent.
The economist added that it was "perfectly possible" for Scotland to develop its own central bank if the need arose, but insisted retaining the sterling would be a much preferable option.
"I would prefer that within a formal currency union because I think that would be in the interests of all of the UK, not simply Scotland," said Sir Donald.
"If you couldn't do that, you'd follow the Irish model, that is, you'd simply shadow the pound.
"You would keep parity - you would use sterling. Sterling is an internationally traded currency.
"There's nothing to stop you using it if you want to."
Scotland's First Minister Alex Salmond has been one of the major forces behind the 'yes' movement, claiming the 300-year-old Union between the two countries is no longer fit for purpose in the XXI century.
According to Salmond, an independent Scotland would become one of the world's richest countries, given its oil wealth, and has urged Scottish voters to free themselves from the "shackles" of the London-based British government.
Currency has been one of the main areas of disagreement between Scotland and the UK government, with the Scottish government insisting that they're determined to retain the pound as part of a formal currency union with the rest of Britain.
Salmond and the pro-independence campaigners argue that retaining the pound in Scotland would be the best option for both sides, but the Conservatives, Liberal Democrats and Labour have already ruled out the option, notwithstanding who'll be in charge after the UK general election in May.