In a bid to break away from the U.K. and the pound Scottish Independence supporters have launched the Scotcoin; however, reports suggest that its low value would make the cost of everyday living increase.
According to the British newspaper, the Express, the digital Scotcoin is worth less than the Zimbabwean dollar, with 1,000 Scotcoins amounting to 86 pence. At the moment, 481 Zimbabwean dollars amounts to £1, while £1 equals around 1,175 Scotcoins.
Last year, the Scottish National Party’s George Kerevan called on the country to experiment with the digital currency saying that it would help Scotland to stop relying on the pound.
The Express reports him as saying:
If you were to persuade people there are alternatives to using sterling, one way of doing that, rather than having an intellectual debate, is to show people.
According to The Global Financial Centres Index, in 2007 Edinburgh was ranked 15th in the list of world financial centres; however, in 2012 it fell to 37th and in 2015 it was ranked 71st.
Despite this, though, Scottish National Party (SNP) leader Nicola Sturgeon is adamant that Scotland should market itself with its own currency away from the pound.
However, in order to do so would mean that the country would automatically inherit a proportion of Britain’s overall debt, resulting in major cuts to public services. It would also mean that the country would be required to sell off a number of government assets and would need to find £33 billion to run the country under the Barnett Formula, as it currently does.
This formula is a system of grants which states the level of public spending in Scotland, Wales and Northern Ireland. Under the formula, Westminster allocates extra funding or cuts depending on the population size of each nation and the powers delegated to them. This, though, would be removed from Scotland if it broke away from the U.K.
Even though most of Scotland wants to remain within the U.K., it seems as though the SNP are determined to gain independence despite the insurmountable challenges that the country will face.
Finance spokesman Murdo Fraser MSP said to the Express:
Supporters of independence have got themselves into a complete mess over the currency questions, and the Scotcoin looks like it is another in a long list of failed ideas.
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Last modified: July 2, 2020 8:20 PM UTC