Cannabis and Banking

Altcoin and Other Solutions

Nasdaq agrees that cannabis entrepreneurs needs some safer, non-physical way to store its cash. One solution is cryptocurrencies such as bitcoin. (There’s even a cannabis-specific form of altcoin called PotCoin.) But with bitcoin’s own slightly shady reputation (warranted or not) as the currency of choice for illegal activities, using it so extensively might attract more federal attention and harassment to dispensaries.

Still, the problem with bitcoin isn’t inherent in the cryptocurrency but in what you do with it. In addition to buying marijuana and other, darker drugs, it also can buy addiction rehab. One doctor who accepts Bitcoin at drug rehab centres in California said it’s no different than taking hundred-dollar bills.

Other tech solution workarounds have been proffered. Some turn cash into a digital token that uses the same blockchain ledger as Bitcoin to record transactions. Some use software and regulatory technology – last year Microsoft partnered with one – to ensure compliance with federal and local laws. And others enable debit payments for cannabis purchases with an app.

With this much money at stake, and eventual cannabis legalization seemingly inevitable, it should continue to become still easier to purchase weed in the near future.

Read more here The Market Mogul

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