Cryptocurrency, solution to the Cannabis cash problem?

Cryptocurrency, solution to the Cannabis cash problem?

With the impact of the cryptocurrency being accused of being disruptive to economic innovation, but more importantly the bigger picture with a potential to revolutionise the current economic structure. The economic power which lies with the governments and financial institutions is at stake which has made them wary of cryptocurrencies. We explore the use of cryptocurrency as a solution to the less-savoury methods of handling the cash problems in the cannabis industry. The issue is bigger than we think, however, since it needs a comprehensive re-education on the best way to purchase and sell products employing a digital currency. 

The whole big idea was to solve the money problems for people wanting to transact in legal marijuana. In fact, the question lies more in whether it's legal to purchase cannabis in your nation. It can just be a matter of time before pot dealers have a simpler more streamlined finance digital solution.

“Legal or not. I’m still gonna smoke it. I’m still gonna buy it. Do you take a credit card?”

Cannabis cryptocurrency might help state-legal marijuana businesses get around a number of the important obstacles of federal prohibition as well. Contemplating all that it offers, cannabis cryptocurrency is definitely likely to stick around as the next phases of payment innovation within this booming industry.

The price of accepting Bitcoin type payments from marijuana customers might be lower than other payment solutions we predict. The expense of protecting massive quantities of money which is a common characteristic of the industry is obviously costly. On the flip side, if the purchase price of the 'Cannabis Cryptocurrency' becomes inflated, customers will eliminate the motivation to make their purchases with the coin. Conversely, handling sales digitally supply a layer of security that will help protect a merchant and customer complete a cleaner exchange. 

Although the buying and sale of cannabis for medical and recreational use were legalized by state governments in lots of states of America, most payments stay restricted so far as cash is concerned. Perhaps, for now, it seems that marijuana sellers can't readily trade through bank accounts always reverting back to good old-fashioned paper cash transactions.

Now with the rising popularity of cryptocurrencies like Bitcoin, cannabis businesses are turning to the digital currency in an attempt to do away with all their accumulated cash piles. The cannabis market and certain digital currency providers are in recent discussions at the present time to agree on the terms and conditions of their international adoption of digital currency.

Regardless of the legality of running a cannabis operation in over half of the nation, access to banks and conventional financial services remains blocked on account of the drugs federally illicit status. Not only does the solution come to mind with a digital fix, it just requires an online connection and a willingness of someone to formally address the problem so that it can exist in that fluffy legal grey zone. 

The digital currency provider’s end goal is to offer a Bitcoin-type payment solution that can be readily implemented in any point-of-sale machine through a very simple application download. As stated by the press release, both companies are partnering with each other to create a Bitcoin payment solution for the cannabis industry. The organisation has also made several acquisitions to have a diversified approach to the marijuana business, without touching the green-leafed plant yet. 

It is taking the route that cannabis organisations are turning to the world’s most common digital currency in an attempt to eradicate that risky cash storage problem. A scarcity of banking causes even a good deal of serious problems. You might already know that banking is an important issue for the cannabis market. Cannabis banking has been an issue for the previous several decades, but Cannabis cryptocurrency is the very first to attempt to deal with the problem in a wise and reliable way.

As more and more banks refuse to deal with the marijuana industry, we foresee POS systems for pot vendors will start to be adopted in the near future. Customers in general (including marijuana customers) prefer to pay by credit card or debit cards since paying cash is becoming an out-dated method of past. Without a proper POS system, pot dealers would miss out on sales from those non-cash customers which we're assuming is a huge demographic.

Digital currency would become a safer more convenient and portable alternative to handling huge sums of cash which would make holding said cashless risky for merchants to become targets of violent crime.

Another problem that some pot vendors have is that they can’t pay certain daily expenses in cash because the supplier of the service doesn’t accept cash. Things like paying electricity bills or water rates you can’t easily pay with cash and a digital currency might solve this issue too.

One thing is certain. It costs a lot to transport and store cash in the form of armoured trucks, secure safes, and security guards. Digital currency could save marijuana merchants 15% on their margins meaning more profits are not wasted.

Digital currency is not yet widely accepted into mainstream society and neither it pot smoking. It makes sense that these two industries grow up together and help each other out.