SCOTS businesswoman Michelle Mone has defended her plan to sell luxury flats through Bitcoin as part of a £250 million Dubai property venture saying it is no gimmick.

Ms Mone and her partner Doug Barrowman, chairman of the Knox group of companies, launched Aston Plaza and Residences a development comprising two luxury apartment towers and a shopping mall, in Dubai.

The Glasgow couple claim that it will be the "first major development" to be priced in the volatile virtual currency Bitcoin.

“Doug and I are both trailblazers in our own business sectors,” insisted the founder of the Ultimo lingerie range. "So of course we wanted this to be different, unique and exciting – not just in the world of property, but also tech. This is why it is the first-ever development to be priced in Bitcoin. This is a launch of many ‘firsts’ in business and I look forward to an exciting project ahead for myself, Doug and the team.”

The Conservative peer added: "Previously there's been an apartment here and there's been a house here and there, but never a £250 million development, so it's really exciting to be involved in."

Talking about regulatory concerns over the virtual money, Ms Mone said that she would not be getting involved in Bitcoin if it was not a trustworthy investment.

She said: "It's the currency of the future. And I think because everything is logged and registered, everything's transparent, that I wouldn't be getting involved in it — especially from the House of Lords element. I'm a baroness — so I wouldn't be getting involved in it if it was a kind of 'dodgy' industry."

Bitcoin, is a digital currency that is created and held electronically and emerged in the aftermath of the financial crisis. With confidence in the banking system badly shaken, international investors were looking for an alternative way to store and transfer ‘value’. Unlike conventional currency there are no printed notes or minted coins. This helps keep transaction costs to a minimum, and ensure Bitcoins can be transferred from one account to another quickly.

But the virtual currency is known for wild fluctuations in price. One Tuesday the value of one Bitcoin - which was created in 2008 by an anonymous programmer or group of programmers - was worth just above £4,000 - a 20 percent dip from its all-time high of $5,013 on September 1.

That came after China banned the practice of firms raising funds through launches of token-based digital currencies in the latest move to curb risks from unregulated areas of the financial system. It came as several governmental authorities have raised worries about a lack of regulation over cryptocurrencies.

Ms Mone said that "it's fast it's easy and it's transparent" but admitted that it would be converting Bitcoins received into dollars to avoid risk.

"We've teamed up with Bitpay and the CEO of Bitpay has endorsed our development and myself and Doug Barrowman as well, and you pay one percent to Bitpay, it's totally transparent, instead of all these bank charges. So they can trade from one to the other so easy and it is done within minutes.

"We are converting it into dollars live, so we are not taking any risk on the developments. We love Bitcoin as private investors, but we can't put a development of 2.4m square feet under pressure with the fluctuation of Bitcoin.

"There is a massive community in Bitcoin. It's not a gimmick. These people do want to buy things with their Bitcoin. I do believe Bitcoin will be the future digital currency."

She added: "These people have had Bitcoin right from the very start, years ago, and at the start of the year in January it was (worth) $800 a bitcoin.

Mr Barrowman, said they both chose Bitcoin as part of the virtual token's emergence as a more "mainstream" means of investment.

"I've been invested in the crypto world for the last couple of years really, and it's a sector I've watched grow and emerge," the venture capitalist told CNBC in the US.

"So I see it coming to that stage where the early adopters are giving way to a more mainstream application of cryptocurrency, and therefore it's a logical extension to take land and buildings and effectively offer people the opportunity to pay in cryptocurrency or bitcoin rather than just fiat currency."

Barrowman said the "crypto world" would warm up to the property development as investors who don't wish to live in the property can receive a nine percent return on their investment after completion.

"And that finds favour with how the crypto world operates, they like to be rewarded discounts, on ICOs (initial coin offerings), to allow them to buy into things. And I just think it's quite groundbreaking what we're doing."

Mr Barrowman added: “Bitcoin’s meteoric rise in a few short years means it’s now the world’s leading crypto-currency. This is exactly why we are the first property development ever to be priced in Bitcoin. I believe, as it gains mainstream adoption, many will follow our lead on this. I would, as I have done throughout my career in business, like to be the one who starts the trend, a very exciting one at that.”

The Aston Plaza & Residences development will offer “exceptional homes to professionals and young families,” said Mone, who was awarded the OBE in 2010 for her outstanding contribution to business.

“The towers have been designed with community at its core and cater to the those looking for style, lifestyle and convenience, in a beautiful location.”

The development of 1,133 studio, one and two-bedroom apartments, is due for completion in September 2019. Apartments offer floor-to-ceiling windows with unobstructed views of the Dubai Hills and the iconic city skyline.

The development also features the Plaza; three floors dedicated to retail which will include boutiques, cafes, restaurants and a supermarket.

Studio apartments will start in price from around $133,000 (approximately 30 BTC, depending on the exchange rate), with one-bedroom apartments at around $239,000 (approx 54 BTC) and two-bedroom around $379,000 (approx 86 BTC).

Packages for interior design services and furniture will also be offered to purchase in Bitcoin.

Payment platform BitPay will be processing the transactions. The company already provides Bitcoin payment tools to companies such as Microsoft and Richard Branson’s Virgin Galactic.

“Bitcoin payments offer a significant leap forward for high-value international payments,” said Stephen Pair, BitPay co-founder and chief executive.

“These property purchases can now happen in minutes from anywhere in the world with the speed of sending an email. We are pleased to partner with Lady Michelle Mone OBE, Doug Barrowman, and the Knox Group of companies on this exciting opportunity for Bitcoin and for property payments.”