Electronic money

Francis Davey fjmd1a at gmail.com
Wed Dec 3 10:28:27 GMT 2014

2014-12-02 21:39 GMT+00:00 Mark Lomas <ukcrypto at absent-minded.com>:

> Funnily enough only coins are legal tender in Stirling [true but :-) ]. No
> banknote is legal tender in Scotland.
*Pedantically* (and as a lawyer I have to be) Bank of England notes *less
than £5* are (by statute) legal tender in Scotland, so when we had a £1
note issued by the Bank of England, that was legal tender in Scotland and
Northern Ireland. It is just that we don't.

> The term Legal Tender is more historic than practical. The Royal Mint
> gives the following example: a £5 Crown is legal tender, meaning that it
> will be accepted by a court in settlement of a debt, but banks are not
> obliged to accept them.
Unless they sue you for debt :-).

> I think that Francis was correct to suggest that many of the schemes he
> asked about aren't 'electronic money' in the sense defined in the
> Directive. They more closely resemble what bankers call a 'coupon'.
My guess is that if I am online and the software I am interacting with can
securely interact with my bank, there's very little percentage in me having
"cash" stored electronically on my computer rather than simply ordering my
bank to pay it over, unless: (1) I am worried about transaction fees and
the cash-based solution reduces those fees; or (2) I want to avoid being
traced - something Bitcoin claims to do, though I am sceptical about how
well it might do it. It certainly avoids routine money laundering checks by

Francis Davey
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