The world is changing, as can be seen when we look around us; the US president makes statements via a social media platform, marijuana is becoming increasingly legal in different states, and the use of a digital currency, known as cryptocurrency, is rapidly growing. Many years ago, these things would have been practically unthinkable, but we’re embarking on a new era.
With cryptocurrency gaining popularity, many businesses are evaluating how it works, and just how it might be applicable to their finances. It has been of particular interest to legal cannabis businesses, as due to federal restrictions, their banking options are extremely limited. Additionally, even though more states are passing legalization of cannabis, patients and consumers may still be affected by associated stigmas and prefer to maintain anonymity; cryptocurrency provides exactly that. This specific form of currency offers specific and unique benefits to its users and many believe that cryptocurrency won’t just maintain certain businesses, but actually result in their significant growth.
The legal marijuana industry is legitimate, paying millions of dollars in state taxes each year, yet struggling to keep banks on board. These companies have been forced to be creative with their finances, including investing in highly valuable glass ware. From purchasing inventory to paying the employee payroll, using cash as the only means of transaction is limiting and extremely difficult. Business owners are looking to blockchain technology for a solution.
What are the potential benefits of using cryptocurrency for the legal cannabis industry? Employing the use of currency like Bitcoin allows dispensaries to accept credit and debit cards for cryptocurrency, which is then used to complete a purchasing transaction. For many cannabis businesses, cash is currently the only available option, which can be limiting in regards to clientele, as well as purchase amounts. Consumers that don’t use cash are unable to make a purchase, and others that have a limited amount of cash are restricted to small transactions. By bridging the present gap with cryptocurrency, cannabis businesses will be able to essentially accept a variety of payment methods, thus increasing both the number of consumers, and the amounts of transactions, and resulting in overall business growth. The use of crypto also allows for security, transparency (for the business, not the consumer), and simple convenience, among other things.
Digital currency is the only form of currency that is maintained by a peer to peer network, staying completely free of government and federal restrictions as a result. It can’t be counterfeited, nor can its value be manipulated or affected by exchange rates. It is also appealing in an effort to eliminate “middleman” costs, such as those incurred by lawyers or brokers as third parties for certain transactions (like investing in real estate). It is an extremely secure option for finances, as cryptocurrency is encrypted, and extremely difficult to steal, especially when compared to credit card or bank information that is being used so frequently online. Clearly cryptocurrency has many assets that people find desirable. Where will it lead us? With the booming cannabis industry, and the increasing popularity of crypto, it won’t be long before we see their partnered success.