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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 Euro. The euro is the official currency of the European Union and is commonly used through much of Europe. While it is not an official currency in London, the city's status as both a financial center and a tourism center means that you will find places where it is accepted.If you have euro left over from traveling in the continent, you can either try to spend it or exchange it at a bank.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.