As a result of the United Kingdom’s Brexit vote to leave the European Union, American bank JP Morgan/Chase expects that Scotland will leave the UK, and will likely adopt its own currency.
In a note to clients, JP Morgan economist Malcolm Barr indicated that Scotland is likely to hold its own successful independence referendum and exit the United Kingdom before the latter’s own departure from the European Union.
“Our base case is that Scotland will vote for independence and institute a new currency at that point (2019).”
Willie Fleming, director of the Scotcoin Project, an organization meant to promote and disseminate the cryptocurrency Scotcoin to the people of Scotland, concurs with JP Morgan’s stance on a successful independence referendum happening in the near future.
“There will be another referendum soon, quite possibly by November, and that the result will be a convincing win for Scottish Independence.”
A new Scottish pound?
Fleming concurs with Barr that Scotland will likely seek, at least in the short term, to establish a Scottish pound instead of waiting to use the euro in the event of a separation from the UK and union with the EU.
“The question of fiat currency is more complex and much will depend upon the relative performance of the pound and euro over the next few months. In the last referendum, the ‘Yes’ voters argued for the Scots to use the pound on the basis that it was OUR pound every bit as much as England's. This time the situation is different. This time round the Scots may be much less keen to hold onto a damaged and sinking UK pound. On the other hand, no matter how well the Euro may perform in the short term, whether the Scots could be convinced to use the Euro is yet to be seen and my guess is that a Scots Pound fiat currency will be established.”
Could independence bolster Scotcoin’s rise?
Throughout the momentary financial turbulence caused by Brexit, Bitcoin has joined gold as a currency/commodity whose value rises against uncertain economic times. Similarly, over the next several years of a possible fluctuating British pound, the nascent Scottish pound, and consideration of joining the euro, cryptocurrency is sure to be in high demand. The Scotcoin Project has taken note of this, and is ready to seize the opportunity to promote the Scottish cryptocurrency, according to Fleming.
“This would be an excellent opportunity for cryptocurrencies in general and I expect Scotcoin in particular to flourish. I await the outcome of the next few months with keen anticipation.”
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