Edinburgh fintech firm Scotesq has been appointed to migrate Scotcoin, Scotland’s cryptocurrency, to its own blockchain
Edinburgh-based fintech company Scotesq has been awarded the contract to manage Scotcoin’s migration from the Counterparty platform to its own private blockchain.
It has been appointed by The Scotcoin Project, whose mission is to get the Scottish Government to approve Scotcoin as the country’s unofficial cryptocurrency.
It says the new blockchain will remove intermediate currency risk, allowing participants in the ecosystem to move directly between sterling and Scotcoin.
Willie Fleming of The Scotcoin Project said: “The Project team are very proud to announce this important milestone in the development of the currency. Regulation is coming to the crypto world and we must face this challenge head on.
“To gain the legitimacy and respect necessary for the coin to play its rightful role in Scotland’s economy, it is vital that capabilities for full Know Your Customer/Anti Money Laundering (KYC/AML) are built into the system from the ground up.
“By migrating to our own permissioned blockchain we can reduce the costs and delays of transactions on the main Bitcoin blockchain and improve security and reliability. We look forward to working with Scotesq and their partners to provide added business acumen and technical capability which has hitherto been lacking in our small but dedicated team.
“The delays, inefficiencies and onerous charges of the High St banks cost our small and medium enterprises a cripplingly high percentage of their turnover each year. These SMEs contribute 80% of our GDP. If by using Scotcoin, we can save them even 2-3% of their costs then that is a tremendous boost to these businesses, their workers who are the true generators of wealth and the people of Scotland and the economy in general.”
David Low of Scotesq said: “We are delighted to work with The Scotcoin Project on this important development of the Scotcoin ecosystem which will ensure all work associated with the migration will stay in Scotland.”
Scotcoin is a cryptocurrency established in 2014 by Derek Nisbet, a Scottish fintech entrepreneur. It operates on the Bitcoin blockchain using the Counterparty protocol and has a market value of 10 million USD placing it in the top 200 of global cryptocurrencies as measured by the USD value.
In 2016 all intellectual property associated with Scotcoin was acquired from Nisbet by Scottish fintech investors David Low and Temple Melville.
The investors’ desire is for the Scottish Government to adopt Scotcoin as the country’s unofficial cryptocurrency. It is acknowledged that currency is not a devolved responsibility whilst Scotland remains part of the UK. Scotcoin could only become an official currency if Scotland was independent of the UK or current legislation was changed.