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Quick Answer. About.com reports that the legal currency in London is the pound sterling. The official London visitor's site notes that despite being a member of the European Union, the United Kingdom does not use the Euro as standard currency. Continue Reading.
The pound sterling, or just pound, is the basic unit of currency in England, as the dollar is in America. Pennies are referred to by the plural term pence, but the conversion is the same: 100 pence makes one pound.TMs. Automated teller machines are common in London. You can use your debit card or a credit card to withdraw cash in pounds from any ATM simply by using your PIN. When you do so, the bank will automatically calculate the exchange rate and debit that amount, in US dollars, from your account.