Blockchain Startups Are Hoping to Fix the Cannabis Industry’s Banking Problem
There’s nothing like federal law to make even the most legitimate business operators in the cannabis industry feel like a bunch of drug dealers.
While the nearly $7 billion weed industry is growing, the conflict between federal marijuana prohibition and state laws authorizing medical and recreational pot use makes it almost impossible for many cannabis businesses to have bank accounts or accept credit cards. Federally regulated banks usually refuse to work with clients who make their money from a Schedule I drug that is still in the same category as heroin.
Now, a number of startups are using blockchain technology to to facilitate business transactions in the cannabis industry. With digital currency, they’re hoping to target the nearly 75 percent of all cannabis businesses that operate only in cash and without bank accounts—despite a statement from the Justice and Treasury Departments that should have allowed banks to serve state-compliant marijuana businesses.
"At...
This marijuana news is brought to you by 420 Intel. For the latest breaking cannabis industry news, subscribe to the 420 Intel newsletter. If you'd like to promote your product or service in this area after every article, contact us.
Follow us on Instagram
Connect with us on Linkedin