- Businessman Peter McGowan bought a two-bedroom apartment with Scotcoins
- It is the first time the digital currency has been used to buy property in the UK
- The apartment in Glasgow was sold for 10 million Scotcoins, equal to £60,000
A two-bedroom apartment in Glasgow has become the first property in the country to be paid for using a digital currency.
Businessman Peter McGowan purchased the flat for 10 million Scotcoins, the equivalent of £60,000.
He bought the flat from his friend and business colleague David Low, who owns Scotcoin’s intellectual property.
The businessmen met more than 20 years ago when Low, the prime mover in Fergus McCann’s takeover of Celtic Football Club, fronted a Celtic roadshow in Corby.
In a UK first Peter Low, pictured left, bought a Glasgow apartment from Peter McGowan, right, using digital currency. It sold for 10 million Scotcoins, or £60,000
Businessman Peter McGowan, pictured far right, bought the flat from his friend and business colleague David Low (left)
Both McGowan and Low invested in Scotcoin shortly after the currency’s launch in 2014.
And although it may have been the first digital house sale, the transaction was still subject to normal conveyancing rules and procedures.
Mr Low said: ‘Peter wanted a flat and I wanted more Scotcoin so we’re both happy.
What are Scotcoins?
Scotcoin is a digital currency which its creators claim offers an alternative to pound sterling. But the number of businesses who will accept them as legal tender is very limited. Like other digital currencies, such as the infamous Bitcoin, payments are made directly between individuals or businesses, removing the need for banks. The latest price of Scotcoins, which can be bought online, is listed as £7 for 1,000. This is compared to £3,021 for a single Bitcoin. There are one billion Scotcoins in existence, meaning if demand for them rises, the value of each coin will also rise.
‘We commissioned a Home Report, which gave us the fair value of the flat in sterling, which we translated into Scotcoin on the day of sale.’
Mr McGowan added: ‘It’s something that didn’t cost a lot of money. It’s a long-term punt.
‘And because it’s not my principal home it’s subject to the Scottish Government’s Land Buildings and Transactions Tax, meaning that I will be paying three per cent, £1,800, into their coffers.’
Mr Low said that for cryptocurrencies to really succeed ‘they have to be more user-friendly.’
He added: ‘They are now a viable store of value but they have to break through to mainstream and main street sales, and hopefully this is deal helps it on its way’.
Mr Low, left, said: ‘Peter wanted a flat and I wanted more Scotcoin so we’re both happy’