It will add on to your current wallet, and either convert to GBP, or change the GBP to EUR.
Also, I think your wallet should convert from GBP if you checkout using Steam Wallet, and change the billing address to the country to the one you're currently in, and tick the "I currently live in this country" box. I'm not 100% sure that it will convert though.
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Hei, I have travelled a while ago around. Been to UK and back to Europe. Steam did change the currency to GBP and while I was buying some things I got stuck with some GBP in the wallet. Selling and buying cards in the market works over GBP mainly.
Now I got some Steam credit in EUR from a local store. If I will add it, will I lose the GBP wallet? Will I get two currencies? Because at least I can't buy EUR games with the GBP.
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