Common Weal and NEF join forces to create digital currency plan for Scotland

The New Economics Foundation (NEF) and Common Weal have created a report on a new model of currency in Scotland

A NEW REPORT has been published by the independent think tank NEF in association with the Common Weal exploring the creation of ScotPound, a new digital currency.

The report suggests that the unique political status of Scotland's devolution settlement has created an opportunity to establish a digital currency that would operate alongside Sterling. The suggested currency would be the ScotPound (SPS), and would be free at the point of use.

NEF has constructed the report in the hope that political parties in Scotland will include plans to create a digital currency in their 2016 Holyrood manifestos.

Duncan McCann, Researcher in Economy and Finance at NEF, stated: "Last year's independence referendum kick-started an important debate on Scotland's relationship with sterling. But in fact, even under devolution, Holyrood has the power to transform Scotland's monetary system.

"Scotland is in a unique position to take full advantage of current trends in digital financial innovation. A new currency and payment system like SPS would operate alongside pounds sterling, supporting small and medium businesses and putting money in the pockets of those currently excluded by the financial sector," he said.

How would it work?

The proposal suggests that BancaAlba, a new public institution, would be created to issue SPS. BancaAlba would coordinate a not-for-profit payment scheme called ScotPay, which would be free to use for businesses, individuals and government. Transactions would be done via mobile phone SMS or app, online or with voice recognition software.

Robin McAlpine, director of the Common Weal, said: "In an era of non-standard monetary policy, this is a comparatively modest proposal, which would let Scotland create a serious injection of money into the Scottish economy via the pockets of Scottish citizens.

"A digital currency is the kind of idea a modern, innovative and entrepreneurial government should be exploring. The process would also be instructive for a nation which might conceivably one day have to create its own currency."

What are the predicted benefits?

The idea is to support every citizen in Scotland registered on the Electoral Register with a BancaAlba account, and provide each person with a citizen's dividend of SPS250. In its economic analysis, NEF predicted that this would create a SPS15 million annual surplus.

The system would operate parallel to the existing Sterling currency.

Although the operating costs would initially be covered by the Scottish Government, the creation of SPS would not add to Scotland's debt or that of the UK economy. NEF's economic analysis states that no money would need to be borrow or set aside to establish the new currency.

Conservative estimates put operational costs at PS3m.

How would this work in the interest of society?

The prevailing idea behind the digital currency is that money can be a powerful tool for social innovation. The benefits of the SPS should thus extend to beyond the economy.

NEF predicted in the report that the introduction of the SPS would lower costs for Scottish businesses, as they would accept payments without paying bank fees. It would also be distribute to citizens who do not currently have a bank account, encourage wealth creation that will stay in Scotland and practice participatory budgeting.

Professor Nigel Dodd, London School of Economics, said: "This report is an extremely timely and welcome intervention in current debates about the way our monetary system is governed and organised, and specifically about the merits and efficacy of conventional quantitative easing.

"Given that the currency question played a major role in the Scottish referendum debate last year, I have no doubt that the proposals for a ScotPound will inform future discussions in Scotland. NEF's proposals are extremely clear and convincing."

Picture credit to Images Money

Comments

airchie

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

hjurid

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Jay Evans

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Jacob Kelly

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Gregor Burns (not verified)

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Derek Louden

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Derek Louden

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Derek Louden

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Derek Louden

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Derek Louden

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

pictishbeastie

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

pictishbeastie

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

pictishbeastie

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

pictishbeastie

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

pictishbeastie

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

Robin Barclay

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Robin Barclay

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Robin Barclay

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Robin Barclay

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Robin Barclay

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

markryle

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

markryle

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

markryle

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

markryle

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

markryle

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

Karen Dietz

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Karen Dietz

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Karen Dietz

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Karen Dietz

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Karen Dietz

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

Roisin Murphy

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Roisin Murphy

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Roisin Murphy

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Roisin Murphy

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Roisin Murphy

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

William Steele

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

William Steele

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

William Steele

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

William Steele

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

William Steele

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

Steve West

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

Steve West

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

Steve West

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

Steve West

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

Steve West

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

DAVID SMART

Thu, 09/10/2015 - 12:34

"Transactions would be done via mobile phone SMS or app, online or with voice recognition software."

It should be started with implementation on the 'Saltire Card' oyster card like system. Make any money placed on Saltire Cards be in SPS. This provides a very large initial user base: all users of public transport, and a more obvious and intiative way to introduce the idea to the population. It's worth looking at how Singapore uses their EzLink cards in much the same way.

DAVID SMART

Thu, 09/10/2015 - 18:05

The more I read about this the more I want it to happen, and as soon as it can be implemented then I would definitely put money into the SPS.

DAVID SMART

Thu, 09/10/2015 - 22:43

This sounds very like a national scale LETSystem. Nothing wrong with that, in fact it's brilliant, but it will attract interest from HMRC. How would ScotPound enable the legitimate payment of taxes? https://en.wikipedia.org/wiki/Local_exchange_trading_system#Operation

DAVID SMART

Sat, 09/12/2015 - 10:19

@Hugh Reid
Very valid point Hugh on HMRC, but at the same time a mute point should Independence be successful.
It would make paying taxes & VAT on transactions extremely easy with a digital currency to a centralised Scottish Tax Collection Agency. Yeah? I think so.
Thank you for pointing that out Hugh, got the grey matter working.

@Jacob Kelly
Note worthy indeed, Saltire card - all public transport. Hmm.

DAVID SMART

Tue, 09/22/2015 - 07:47

The possibilities with this system are mind-boggling. Looking at the innovation surrounding bitcoin that is completely de-centralised, a similar system with the backing of the state should encourage similar innovation.

Interested in understanding if the SPS will have a demurrage fee to discourage hoarding and increase money velocity (similar to http://freico.in/ and The Worgl Experiment (http://www.lietaer.com/2010/03/the-worgl-experiment/) in line with the work of Silvio Gesell?) That demurrage fee would probably more than cover the cost of running the scheme and allow the government to possibly offer grants to people developing useful software for the system?

Also it would massively encourage political engagement since you'd need to be on the electoral register to get the cash. Obviously just being on the register wouldn't in itself encourage political engagement but it's certainly a good first step to engaging the electorate.

In future developments, the back end system could be used for things like voting, either in local or national elections and could also be used as a means of verifying the results of any future referenda. You could have yes/no card readers on the exit to the polling stations that automatically counted your vote and could be verified against the "official" result to highlight any "discrepancies". :)

Basically, using SPS as a complimentary currency is just the start IMO...

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