JP Morgan Anticipates Scotland Exit from the UK, Form New Currency

Journalist:
Rebecca Campbell
July 1, 2016

Scotland is expected to vote Yes in a second independence referendum and introduce its own currency before the UK leaves the European Union in 2019, according to American bank JP Morgan.

Bank economist Malcolm Barr said in a note to clients that a ‘pressure to hold a new referendum’ would be expected following the UK’s decision to leave the EU, and that Scotland would establish its own currency instead of continuing to use the pound.

Article 50

The Wall Street bank is of the opinion that whoever takes over from Prime Minster David Cameron in October is predicted to trigger Article 50 later this year, setting into motion the two-year period of negotiations that the UK is required to undertake to exit the bloc.

Mr Barr stated that the UK has two available options: a ‘Norway-style’ agreement, which would allow free movement and budget contributions to the EU in exchange for access to the single market, or an arrangement that would reduce access to the single market, as reported by the Scotsman.

He said:

At this point in time, the latter appears more likely. We expect there to be clear evidence of multinational operations shifting the location of their activity out of the UK given the regulatory uncertainties.

“Even if the UK begins to signal that it will compromise on other priorities in order to secure full access to the single market in financial services, there is a clear risk that euro-denominated activities relocate to within the EU simply to ensure continuity of relationships.

Scotcoin

Established in 2013, by Derek Nisbet, Scotcoin was developed as a way of giving the people of Scotland an alternative to the pound Sterling.

With over one billion Scotcoins in existence the organizations aim is to inform and educate the Scots about the underlying advantages of cryptocurrency with individuals able to use their digital cash to buy beer, pay for a meal, or even book a holiday.

The Scotcoin Project announced in a blog post that the property and rights to Scotcoin had been bought by Scottish businessmen Temple Melville and David Low for an undisclosed sum. According to Project Director Willie Fleming this marks an important step in the evolution of Scotcoin, applauding the vision that Derek Nisbet had by creating it.

Now it is our job to carry on the work of making Scotcoin a viable alternative to sterling and educating Scots and the wider world about the advantages of strong cryptography, the blockchain and specifically Scotcoin.

The Brexit vote underlines how important cryptocurrencies now are and how essential that we in Scotland have our very own – Scotcoin – to fall back on in times of uncertainty.

Whether or not Scotland does create its own currency instead of relying on the pound Sterling is yet to be seen; however, the development of Scotcoin and a possible second independence referendum highlights how determined the country is at following its own rules in the future.

Featured image from Shutterstock.

Rebecca Campbell