Digital assets in Scots private law: consultation

Annex: User Stories

1. As a cryptocurrency investor, I want my Bitcoin to be legally recognised as property that can be used as collateral, So that I can secure a traditional loan from a financial institution without having to liquidate my Bitcoin holdings.

Scenario:

• Charlie, a UK-based crypto investor, owns 10 Bitcoins.
• Under the current legal framework, Charlie faces challenges in using this Bitcoin to obtain a traditional loan, as banks often refuse to accept crypto-assets due to legal uncertainty about their status as property.
• With the proposed digital assets bill recognising Bitcoin as a form of property, Charlie can now use this Bitcoin as collateral for a loan with a UK bank.
• If Charlie defaults on the loan, the bank can take legal action to seize the Bitcoin, similar to other assets used traditionally in collateral arrangements.

2. As a social media user,

I want to manage and develop my social media accounts within various platforms,

So that I can enhance my online presence and personal or business branding.

Scenario:

• Alex, an avid social media enthusiast, has invested significant effort and resources into building their profiles across multiple platforms.
• However, Alex’s accounts would not be considered personal property because they lack independent existence; they rely on the continuous operation of the social media service provider for these accounts to exist and could potentially vanish if the provider ceased operations or were deleted by the provider.
• They are also not rivalrous; the social media accounts Alex has developed are on platforms accessible to anyone, meaning that others can create similar profiles and content, not restricting usage by others.
• If the accounts were stolen or compromised, Alex might not have the same legal recourse options as those available for traditional property.