It was introduced by David I, in the 12th century, on the Carolingian monetary system of a pound divided into 20 shillings, each of 12 pence.

The Scottish currency was later devalued relative to sterling by debasement of its coinage.

[citation needed] By the time of James III, one pound Scots was valued at five shillings sterling.

[citation needed] Silver coins were issued denominated in merk, worth 13s.4d.

These notes may be accepted as payment throughout the United Kingdom, but are much more commonly seen in Scotland; their value is backed by non-circulating large denomination notes issued by the Bank of England (the "giants" and "titans").