About 304 million people use euros

Senator Frank Walker said joining another currency remained an option.

The UK Chancellor of the Exchequer, Gordon Brown, has said Britain would not join the euro until five economic tests by the UK government on whether the country is ready for membership are passed.

A crucial announcement on the euro is due on 9 June, when Mr Brown is expected to say the tests for membership have not yet been met.

However, the possibility of the UK joining the single European currency at some time in the future left Jersey with a decision to make, Senator Walker said.

Researching options

The Policy and Resources Committee is researching what options the island might have in the event the UK government does link with the currency.

Senator Walker said it was not a foregone conclusion that Jersey would follow because the island's tax situation may be unfavourable.

Senator Walker has also said joining another currency could not be ruled out, including the US dollar.

He is due to make a statement about his committee's work on the issue to States members on 10 June.

The euro is the single currency of the European Monetary Union which became legal tender in 12 member states of the European Union in January 2002.