The island of Jersey wants to become the world’s first Bitcoin haven

There are advantages to being a tiny, self-governing speck in the English Channel, and the ability to create a “welcoming” financial habitat is certainly one of them. But Jersey has ambitions beyond just being a haven for regular cash. Its Treasury Minister, Senator Philip Ozouf, says he wants the island become a pioneer in the use of crypto-currencies too, and he’s backed up by a campaign group that’s dedicated to creating the world’s first “Bitcoin Isle.” The initial goal would be to use Bitcoin as local cash substitute, to pay for things like bus tickets and newspapers. But it’s clear that Ozouf has his eyes set on a bigger prize: a Bitcoin banking sector that could make use of Jersey’s “infrastructure of world-class financial services” and that would eventually become “central to Jersey’s future prosperity.”

A campaign has been launched to make Jersey a world leader in digital currencies. Bitcoin payments are already accepted in a handful of places but an industry expert says, if the States allow banks to accept and trade with it, Jersey could become a magnet for new business. Robbie Andrews, of bit.coin.je, an industry body set up to promote and campaign for the currency, wants to create a “Bitcoin Isle”. Treasury Minister Senator Philip Ozouf said he wanted Jersey to be an early leader in the field. There have been issues around the digital currency, including a lack of regulation and concerns over potential for money laundering and other illegal activity. In October 2013 the FBI shut down online marketplace Silk Road. The site traded in drugs and other illegal goods and took payments using “crypto-currencies” such as Bitcoin. In December 2013, Fiona Le Poidevin, Chief Executive of Guernsey Finance, said the current lack of regulation was an area of concern. She said the Bitcoin concept had become “increasingly familiar, but it is still in its infancy and this brings with it both challenges and opportunities”. Senator Ozouf said: “[This] is a sector that could hold significant opportunities for Jersey.