Generally, powers in section 51 of the Constitution of Australia can also be legislated on by the states, although Commonwealth law will prevail in cases of inconsistency.
However, the currency power must be read in conjunction with other parts of the Constitution of Australia.
Despite this, coins of the Australian pound were not introduced until 1910, following the enactment of the Coinage Act 1909.
The federal government did not issue banknotes until 1913, following the passage of the Australian Notes Act 1910.
From 1901 to 1910 the states could not issue tender and the Commonwealth had not issued tender, so private currency was used as the common medium of exchange whilst the British pound sterling was the national unit of account.