Scotcoin MeetUp – Tuesday 15 October 2019

Join us for the next of our legendary meet ups – this time in EDINBURGH. 

Chat about cryptocurrency, pick up a copy of our book, find out more about the latest news from Scotcoin.

Meetup Date: Tuesday 15th October 2019 @ 6:30pm
Venue: Library Gallery, 1 Summerhall, Edinburgh EH9 1PL

BOOK HERE > Scotcoin Meetup

How Cryptocurrencies Already Help Sovereign Nations

How Cryptocurrencies Already Help Sovereign Nations

Article by Scotcoin’s own Temple Melville published in City AM on 28/8/19

Cryptocurrencies are almost as old as money itself. Indeed, crypto simply means concealed or secret. So the first man (or woman) who tried to exchange some rocks for a sheep could be said to have been using a crypto currency. Up to that point a sheep had been worth 15 chickens. It’s simple, really. You attribute a symbolic sense to something you do not see.

Finance Houses and liquidity

Move on to the 1600s when after the Thirty Years War belief in what then passed for “money” was at a low. Something else had to be found, and it was, in the shape of strong finance houses with robust links to other similar houses. They issued their own currencies when the State currencies could no longer be trusted. Move on again to the American experience of the mid 1800s. There were over 8000 “currencies” – usually paper – being traded around the country with a big business in accepting and exchanging them. There had to be some form of currency to enable trade to take place as America expanded. These of course were seriously open to abuse and eventually the individuals and banks that had issued them had to bow to the Federal Government creating its own, reliable currency.

Liquidity created – WIR

In the 1930s there was to all intents and purposes no liquidity in any markets. Things were so bad that some of the good citizens of Zurich created their own currency to enable them to trade. This was called WIR and was, indeed, like those currencies before it, a crypto currency. Over the years it has prospered (perhaps one would expect a Swiss monetary instrument to do this) until today it is used by more than half a million people, over 70,000 businesses and transacts some CHF2.5billion annually – that’s around half a percent of Swiss GDP. By doing so, it illustrates exactly what “Money” is – a trusted medium of exchange that others will accept, and a stable store of value.

Crypto today

The present crop of crypto currencies rely on digital technology to give them credibility. You can’t have a run on the “Bank” for example – there isn’t one. Despite being relatively small in terms of value (only some 0.1% of total world assets) they already show what digital and crypto currencies can do to enhance people’s lives. As an example, if you want to send £1million to anywhere in the world, that will cost you between £20-30,000. Using a digital currency, it can be done for 50p. In fact, the Philippines is looking to create a Bitcoin transfer system for its overseas citizens. Using this system would save their economy over USD1.5 Billion a year – a significant sum in a poor country.

The three cryptos no one talks about

There are three interbank tools that are in effect digital currencies and have been for years. These are:

1. Target2 – the ECB system, the old Bundesbank system which is currently so politically in focus in respect of Italy

2. IMF SDRs – Special Drawing rights

3. The highly secret interbank settlement system at the BIS in Basle.

These three were absolutely crucial in getting the world through the 2007 crisis.

Hyun Song Shin of the BIS argued last year that cryptos (and he was specifically talking about Bitcoin) had issues with scalability and finality. At that time he was right as you would expect, but he was talking about first generation blockchain. We have since had second generation in Hyperledger, and now third generation called Permissioned Decentralised Blockchain. Facebook’s Libra will largely use this system and there can be no doubt this will revolutionise the use of digital and crypto currencies world-wide. We’ve gone from around 35 million wallets to a potential 2.7 BILLION. But Shin’s central thesis holds good – you need people to USE these new currencies to make them both trusted and useful, and having exchanged goods for the currency, the person TAKING the currency needs to find someone else to take it as well.

Cash declining

The use of cash has been declining for years in most western countries, and the Central Banks have realised that it will have to be replaced with something. To this end both Sweden and Uruguay have run full scale crypto trials which have largely been successful, though not set for full implementation anytime soon.

The use of crypto currencies can and should mean social inclusion. Whilst Central Banks’ attitude remains “Bitcoin is not a good idea,” the idea behind it continues to fire imaginations all around the world.

The Brixton Pound

This remains a very positive initiative which is making a real difference within Brixton. Arguably it’s as old as Bitcoin. People are prepared to use it and pass it on – and the money stays in Brixton. That is different from the likes of Bitcoin which is world-wide, but it doesn’t detract from the social inclusiveness of it. We look to history for lessons on the nature of money and the role of central banks in building trust in the use of money in society. The issue of trust has again come to the fore in debates on the durability of cryptocurrencies such as Bitcoin, and how far private money can supplant central bank money as a medium of exchange.

Future payment needs

In the future, physical cash or even bank transfers as we currently know them are unlikely to be the main answer. Central banks are already working on systems and digital currencies that will be trusted and used. Existing crypto-assets have exhibited a high degree of volatility and are considered an immature asset class given the lack of standardisation and constant evolution. They present a number of risks for banks, including liquidity risk; credit risk; market risk; operational risk (including fraud and cyber risks); money laundering and terrorist financing risk; and legal and reputation risks. But new know your customer and anti-money laundering rules will mitigate much of this.

In many ways, the African sub-Saharan region has become a leader in mobile money resulting in a radical change in the delivery of financial services and significant gains in financial inclusion. Where there is a lack of payment infrastructure, the use of crypto currencies immediately enhances trade and social inclusion. You only have to think of Eastern Europe which hardly had a fixed line telephone system before 1989, and suddenly every man and his dog had a mobile phone, leapfrogging to a new world.

Christine Lagarde in an excellent speech to the November 2018 Singapore Fintech Conference, has posed the question – should central banks issue a new digital form of money?

Arguably they already have. As such, it can only be seen as a force for good.

Scotcoin awarded the ‘Most Community-Focused Digital Currency Platform 2019

A pleasure to announce that Scotcoin has been awarded the ‘Most Community-Focused Digital Currency Platform 2019 – Scotland’, by the CV Magazine’s Corporate Excellence Awards 2019.

Scotcoin - Corporate Excellence Awards 2019 Certificate

Types of token

On July 31, the FCA issued its settled policy statement on cryptocurrencies in a document titled “PS19/22: Guidance on Cryptoassets.” The document represents an updated version of a consultation paper on crypto assets that was first released for public comment in January 2019, and intends to bring more regulatory clarity to existing types of digital assets.

In essence it describes 3 types of crypto assets.

  1. Exchange token: Referencing Bitcoin and Ethereum, the FCA described these tokens as “usually decentralized and primarily used as a means of exchange.” The regulator emphasized that such digital currencies do not fall under the regulatory scope of the FCA and is outside its remit.
  2. Security tokens: The FCA said it will be regulating security tokens as they are considered as digital assets with specific features that provide rights and obligations akin to specified investments such as shares or debt instruments
  3. Utility tokens: These fail the Howey test, and simply provide users with a product and/or service.

The FCA also stated that some stablecoins may fall under its remit, as they have characteristics of e-money or security tokens. Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets. A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).

For the avoidance of doubt, Scotcoin is an Exchange token.

When Harold Wilson said “The Pound in your pocket won’t be affected” he didn’t know about crypto currencies

Money

Life has moved on a great deal since those days, and not least because, slowly but surely, people are carrying less and less cash on them. Only a couple of years ago, the Royal Mint didn’t produce ANY 20p pieces or £2 coins. Why? Because the fall in their use had meant they didn’t need any more circulating.

Rockvilla Pizza in the Rockvilla district of Glasgow have decided to go completely cashless. It may sound like a gimmick, but there are good commercial reasons as well. The Rockvilla  area itself has a lot of interesting history see HERE: https://www.heraldscotland.com/arts_ents/13839562.rockvilla-rises-the-vanished-part-of-industrial-glasgow-set-to-be-resurrected-as-a-theatrical-hub/

Rockvilla Pizza is opening on 23rd July and if you register you can get free pizza!

pizza
Free pizza – with Scotcoin!

Typically, what happens in a venue that takes cash?

First thing in the morning you have to check the float. Do you need more change? Nip to the bank where they will charge you 80p per £100. You give and take change all day and (horrors) when you cash up at night it’s short! Then you have to take the money into the bank where they charge you another 80p per £100. And none of that includes the cost of time and the poor person who has to count it all.

So commercially not taking cash saves quite decent sums of money, as well as a lot of time, and in Rockvilla Pizza’s case they intend to reduce the cost of their pizzas.

So not only will they make full use of contactless (which by the way means there is never a cash shortfall and there is a proper record of every transaction) but their intention is to take Crypto Currencies as well.

Oh and there’s one other benefit: Your insurance premium goes down too. No cash, much lower premium. No cash overnight, much lower premium again. And you don’t have to be insured to take cash to the bank either. It’s a beautiful virtuous circle which means your pizza will be the best value ever!

And don’t forget, if you register  before their official opening on 23rd July, you can get free pizza!!

Register HERE : https://mailchi.mp/9d5da1d556d1/rockvillacomingsoon

Hype Cycle Blockchain

Blockchain has moved on…

Blockchain has moved on since we started this journey. If Bitcoin was first generation Blockchain, Hyperledger was second generation. We are now into THIRD generation, which is described as permissioned decentralized blockchain.

Libra, Facebook’s offering in the digital currency space is exactly that, and Microsoft is clearly committed to blockchain technology. That being the case, you can bet Amazon and Google are not far behind.

In  many ways Scotcoin is lucky that solutions which less than a year ago appeared final and long term, have in fact proven to be less than robust. But we at Scotcoin have remained committed to research and partnerships with credible players in the industry.

We have refined our approach to define 5 pillars on which any solution must stand.

  • 1. An efficient and cost effective migration process. We have some 3500 holders of Scotcoin we need to migrate safely and securely
  • 2. A robust blockchain solution
  • 3. Un-issued surplus coin creation (for reward and future distribution)
  • 4. Access to an efficient secondary market or markets and
  • 5. Crucially, a reliable and durable delivery partner with likely longevity. Present management both of Scotcoin and providers of blockchains will unfortunately not live forever. That means the company we choose to go with must be extremely well capitalised and look to have longevity.

In terms of progress, for 1/2/3 and 5 we have solid ticks. 4 is the crucial one and is the most difficult for all altcoins.

It is however one we have to make sure works for all our holders. In essence it is the provision of liquidity to all Scotcoin users and this has to be guaranteed.

As ever, America is 6 to 9 months ahead of the UK and Europe in this regard, but that does mean we are able to look at solutions being offered and choose the best features. As usual, everything reverts to the mean and what a few months ago was thin on the ground is becoming almost commonplace today.

We have been through the classic hype cycle of euphoria followed by crash and burn, then slow revival and quiet confidence.

hype cycle for Blockchain business 2018

It looks very much as if we are now in this latter stage, with positive developments and progress on the provision of blockchain technology and you can be assured the Scotcoin team is across this.

We at Scotcoin as I say are very much in the penultimate  stages of choosing the long term provider we need, and look forward to announcing our collaboration with them in  the near future, which we aim to secure the future of your Scotcoin predicated on our five pillars.

Scotcoin Advisory Panel and Other News

New Social Media Manager at Scotcoin

Scotcoin welcomes onboard Elizabeth Myles-Geddes as Social Media Manager.

Elizabeth has worked in digital marketing for 7 years with clients as diverse as Harvey Nichols, Heriot Watt University and the Google sponsored Start Up Grinds in Edinburgh and Glasgow. She currently runs her own consultancy advising micro businesses on all aspects of their digital strategy and content and in the past 6 months has helped 3 companies increase their revenues by up to 500% She holds an MSc in International Marketing specialising in Digital Marketing from Heriot Watt University and an Executive MBA from Leeds University.

Counterparty and DEX Market

The situation with the Counterparty Dex is the same as it’s always been – any coin on the protocol is beholden to the value of XCP, Counterparty’s token. You may not have picked up but both Bittrex and Poloniex have stopped trading XCP and TUX will cease trading altogether on 7th July. If you have any coin with them GET THEM OUT! As a result, the value has rapidly disappeared towards $0. We are working towards putting Scotcoin onto its own blockchain, but linked to value of over $5billion. We will no longer have a price which is indicated by a third-party digital currency and which is volatile.

Be assured these current XCP changes will have no adverse effect on Scotcoin  longer term. If you have any XCP you would like to sell, the Scotcoin Project will buy them at $2 per XCP which is more than the existing exchange price OR 10% above prevailing.

Contact [email protected]

Advisory Board

Scotcoin has been working hard to bring together its advisory board and is delighted to announce that it now boasts an impressive collection of 7 individuals who collectively have over 100 years experience in blockchain, finance, sustainability,cryptocurrency, HR and senior management – this team will provide invaluable insight and guidance to the development of the project going forwards. Full details will be announced immediately prior to the MeetUp scheduled for 9th July 2019.

Scotcoin Advisory Panel

The Scotcoin Project as an Educational Resource

The Scotcoin Project is in an excellent position to partner with schools and universities to offer resources to support education around alternative economies and a working model for emerging cryptocurrencies.

Temple Melville is one of only two people in UK certified as CPD instructors for Blockchain and the only one in Scotland, we are currently developing an e-book based on course materials.

Scotcoin is speaking to Stirling, Strathclyde and Glasgow Universities who now offer MScs incorporating Fintech and additionally to Edinburgh University which has its own blockchain and cryptocurrency research hub.

Scotcoin Intern

Scotcoin welcomes our first intern Emma who starts on 15th July for 6 weeks.

Emma is doing a BSc in Business and Economics at Lund University. Elizabeth will be managing Emma and both will be based at Collabor8te.

Third and Voluntary Sectors

Scotcoin wants to strengthen its existing links with BobathScotland, Eat Up, Social Bite and to develop new partnerships in the arts and sustainability industries. If you have any suggestions please let us have them.

Raising Awareness of the Scotcoin Project

We are currently in talks with the Institute of Directors, the Google Sponsored ‘Start Up Grind’ franchise,Turing Festival and Fintech Summit. If you would like us to come and talk to your workplace, your friends or just have a MeetUp where you live, please let us know and we will try to accommodate you.

Special offer

We have a limited number of 500ml bottles of Elderflower Gin. This is from only 120 bottles coming to the UK this year out of a total production of just 5000 bottles. All you have to do is buy 5000 Scotcoin from the exchange and we will send you a bottle free. I can tell you it is delicious!

XCP Situation

We have had some enquiries about what is happening with Counterparty and its DEX market.

All Counterparty Protocol coins have fallen massively because they are all denominated in XCP, which is Counterparty’s own token. Less than a year ago, 1 XCP was around .004 Bitcoin. Now it stands about .00004 ie a fall of 99%.

The situation with the Counterparty Dex is the same as it’s always been – any coin on the protocol is beholden to the value of XCP, Counterparty’s token. You may not have picked up but both Bittrex and Poloniex have stopped trading XCP and TUX will cease trading altogether on 7th July. If you have any coin with them GET THEM OUT! As a result, the value has rapidly disappeared towards $0.  This very reliance is why we have been working for a long time to remove SCOT from the Counterparty protocol to its own blockchain. This fall has, of course, had a serious impact on the values trading on the Counterparty Dex. I know some people have been able to buy at an exceedingly attractive price.

For now, the only external exchange offering to sell XCP is ZAIF which is Japanese and uses Japanese Yen as its base currency. Counterparty DEX has a BTC/XCP pair, where it is possible to trade BTC for XCP – and it works!

In respect of XCP, its current total value is only about $3m. We are working towards putting Scotcoin onto its own blockchain but linked to the value of over $5billion. We will no longer have a price which is indicated by a third digital currency and which is volatile.

Be assured these current XCP changes will have no adverse effect on Scotcoin longer term.

If you have any XCP you would like to sell, the Scotcoin Project will buy them at the market price. Please contact [email protected]

Scotcoin MeetUp – Tuesday 9 July 2019

Did you know? Only 8.5% of cryptocurrency traders are women. Christine Bamford of Women’s Coin joins us to talk about gender issues in FinTech and how they are working with Scotcoin to promote equality of opportunity using digital currencies. More info: https://www.womenscoin.com/

MEETUP DATE: Tuesday 9 July 2019 @ 6pm

VENUE: The Avalon, 25 Kent Road, Glasgow G3 7EH