The cannabis industry can benefit immensely from cryptocurrencies. | Source: Shutterstock
By CCN: People have long anticipated the legalization of marijuana, long before ‘crypto’ became a buzzword. Over 25 states currently have some form of legalization, with several already moving onto full recreational legalization. A similar process played out during the end of alcohol prohibition in the United States.
States, one by one, made alcohol legal again. Eventually, a constitutional amendment was recirculated, but by the time it passed, most residents had some legal access to alcohol yet again.
Individual jurisdictions were still allowed to restrict the sale and possession of alcohol, and that persists today.
Legalization Has Down Sides
While that seems to be the trend society is following with marijuana, a crucial difference exists today: banking regulations prohibit illegal proceeds. Technically, federal law still classifies marijuana as a dangerous narcotic.
Therefore federally regulated and established banks – most of them – cannot offer accounts to companies that engage in that industry, even if they’re legal where they operate. Banks that did so knowingly would be conspiring in a criminal enterprise. That’s a bad look, no matter who you are, but it’s especially harmful if you’re entrusted with all kinds of money. The last thing you need is a fight with the government in that position.
Which raises the case for cryptocurrency. Dispensaries, which do billions in revenue per year, would be safer storing the majority of their coin in crypto. The solution for many of them might be to host a Bitcoin ATM, and at the end of every day, instead of run the funds to some bank or safe;