scotland independenceAlthough Scotland has yet to vote whether or not to secede from the United Kingdom, pundits have already begun debating how an independent Scotland should structure its society – specifically its monetary policy.
Theorists have noted that, if the Scots vote “yes” on the independence referendum, Scotland could prove a perfect testing ground for large-scale bitcoin implementation. Naysayers argue that free banking systems are unsustainable, pointing to the so-called “free banking” era in 18th and 19th century Scotland. Consequently, if Scotland’s independence vote passes and bitcoin becomes Scotland’s currency of choice, the system will inevitably collapse. However, a closer examination of Scottish monetary policy during this era reveals that although Scottish banks had freedoms not afforded to most modern banks, their banking system was not free.