Scottish cryptocurrency, Scotcoin, has been offered to Holyrood in an attempt to make it the nation’s official digital currency.
Speaking to The Herald, David Low – co-owner of Scotcoin – says that a proposal has been sent to Cabinet Secretary Keith Brown MSP outlining a scheme that will help revolutionise Scotland’s relationship with cryptocurrency.
David Low told The Herald that he wants the equivalent of £10,000 in Scotcoin to be given to under-25’s across the nation and if the government rejects his proposal, he intends to set up a national crypto-fund to tackle poverty, investing in charitable causes and community ventures.
Cards on the Table
The offer made by David Low and the Scotcoin Project was sent to the Scottish Government and members of the opposition parties and includes the the intellectual property, trademarks, domain name and a portfolio of others domains; offering the government an opportunity to leap into the rapidly evolving cryptocurrency market.
A strong focus has been placed on using Scotcoin as a tool to tackle poverty and to invest in community ventures and charitable causes. A number of private crypto-based charitable schemes are already underway across the globe, with DIGIT reporting in January on the Pineapple Fund; a Bitcoin charity fund that aimed to donate over $80 million in cryptocurrency to a myriad of charitable causes around the world.
Cryptocurrency has also been identified as a way to tackle poverty in developing nations; offering citizens an opportunity to gain access to lending through blockchain technology as opposed to conventional lending means.
While Scotland does not experience the same issues, the scheme can offer the government an opportunity to delve into the dynamic nature of cryptocurrency to aid Scottish communities and citizens; encouraging people to engage in ventures with the reward of digital currency.
David Low told The Herald that regardless of whether the Scottish Government takes up the offer, he will still look to use Scotcoin for public causes. If the proposal to the Scottish Government is rejected, a Community Interest Company – complete with a professional board, CEO and assisted by international experts – will be established to administer the currency.
A portion of the currency will be held by existing holders. However, the remaining stocks of the currency – which has a market value of £50 million – will be administered by the board on behalf of the public.
What is Scotcoin?
Scotcoin is a cryptocurrency which, according to the company website, is “one of the first and most successful country-related alternative digital currencies.”
Established in 2014 by Fintech entrepreneur, David Nisbet, the cryptocurrency operates on the Bitcoin Blockchain using Counterparty protocol and is ranked in the top 200 of global cryptocurrencies.
David Low and Temple Melville purchased the intellectual property rights for Scotcoin in early 2016 and also have an interest in the Scotcoin Project itself; which focuses on educating the public on blockchain technology and cryptocurrency.
The Scottish Government’s potential adoption of Scotcoin could revolutionise the way in which Scots spend and invest; offering an all-digital currency could place Scotland in a prime position as our economy increasingly moves towards digitisation.
Where can Scotcoin be Spent?
David Low claims they are “in the process of signing up strategic partners as both employers and businesses where the cash can be spent.” which means that Scots hoping to spend their cryptocurrency will have an extensive array of options at their disposal.
The currency will also be fully-transferable to and from all major currencies, such as pounds or dollars, with David Low telling The Herald: “You’ll use a pre-paid card to shop, a bit like the present system where you can flash one and spend up to thirty pounds and its deducted from your bank account”
Currently, the Scotcoin website offers a directory of people, businesses and organisations using Scotcoin, which include the Leith Business Centre, Scottish Maritime Museum and the Arlington Bar in Woodlands, Glasgow.
Scotland Following Suit?
Cryptocurrencies are at the forefront of technological advancement and many countries around the world look to blockchain technology and its possible applications.
Although nations worldwide are clamping down on cryptocurrencies – citing concerns over money-laundering, regulation and independent oversight – at the same time proposals are being tabled for fully established national cryptocurrencies which can be regulated centrally and used legally by citizens.
Estonia has seen proposals tabled for the use of ‘Estcoin’ as a national cryptocurrency, to which the Scotcoin proposal does bear some similarities. Under Estonian proposals, citizens would be rewarded in crypto for services to the e-resident community.