British territories and Crown Dependencies will be able to design and mint their own versions of the £1 pound coin.
Jersey and Guernsey will have to inform the Royal Mint, who will ensure the same security standards are met before approving and supplying them with the necessary blank or struck coins.
The UK government described it as “the most secure of its kind in the world” when it was introduced in 2017.
The UK Treasury says that the new versions of the coins are expected to feature images celebrating the heritage of the territories, with their history and culture pictured on the reverse side.
Jersey and Guernsey still has its own island-specific £1 note. The pound note was withdrawn from circulation in the UK in March 1988.