article: The ScotPound proposals have been put forward in a report published by the New Economics Foundation (NEF). It argues that a purely digital SÂ£ currency, similar to Bitcoin, could boost the economy and position Scotland as a world leader in economics. The plans follow intense debate over currency in the Scottish independence referendum. The NEF think tank paper says Holyrood already has the powers to introduce a new currency and payment system, which could work alongside sterling. The proposals include the digital ScotPound and a free-at-point-of-use public payment system, ScotPay, operated through an arm's length public enterprise - BancaAlba. NEF said it wanted to drive forward the debate on money, sparked by the independence referendum, and highlight the economic and social potential of financial innovation. It even suggests a SÂ£250 dividend for every Scottish citizen, increasing the overall purchasing power within the economy. Lead researcher Duncan McCann added: "Scotland is in a unique position to take full advantage of current trends in digital financial innovation. "A new currency and payment system like ScotPound would operate alongside pounds sterling, supporting small and medium businesses and putting money in the pockets of those currently excluded by the financial sector." Mr McCann said a lot of people were moving away from cash payments and the ScotPound worked on the model of the phone becoming the new wallet. Prof Nigel Dodd, of the 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."
summary: Scotland could create its own digital currency to operate alongside sterling, economists have suggested.