People have been buzzing about the legalization of marijuana, long before cryptocurrencies ever came to picture. The state of legalization of Marijuana is in a very interesting spot. Over 23 states currently have come to terms with some form of legalization, while keeping full recreational legalization as a viable prospect in the future. A sharp similarity can be laid out looking at how alcohol prohibition was handled in the United States.
Soon after alcohol prohibition, they rolled back and made alcohol legal again.By the time the constitutional amendment was recirculated and passed, most residents had some legal means to get their hands on alcohol yet again.
Individual jurisdictions were still in place to regulate and restrict the sale and possession of alcohol, and that still remains today.
Legalization & its hassles
History is always a good teacher but with marijuana, there is a major difference. The banking regulations prohibit illegal proceeds and based on the current federal law marijuana is still classified as a dangerous narcotic.
This is a huge disadvantage for the cannabis industry as federally regulated and established banks cannot offer accounts to companies that engage in using cannabis as their business product, even if they’re legal where they operate. And moreover, it will be regarded as conspiring in a criminal enterprise in case the banks knowingly grant accounts to these business owners. No bank would want to take on the government and that too for such a grey industry.
Now, this is where cryptocurrency comes in. Dispensaries that make billions in revenue per year are better off storing the majority of their income in crypto. The solution is to use Cryptocurrencies as a means to hold off their funds instead of storing it in regular banks. As of now, there is little to no regulations in which cryptocurrencies are handled as compared to that of paper currency. This might be a boon and a curse in the real world. But For a grey industry like cannabis, it might be its only chance to kick start its growth and establish itself into a credible industry backed by the government.
Othe benefits include the storage only requires a USB stick. Businesses with the ample amount of funds and an understanding of security that comes with blockchain technology will understand how easy and relatively inexpensive it would be to operate a side business in crypto. The added benefits include the ease of transaction of funds and the lack of any middlemen.
Initially, this can be promoted by offering a small discount crypto users while ensuring there is enough profit to keep the company afloat. This business model can prove to be long term beneficial for business owners, especially in the cannabis industry.
With the increase in popularity of the system and the legalization of cannabis, We can soon have marijuana vending machines that accept cryptocurrencies as their currency.
The Mutual Symbiosis
Cryptocurrency and marijuana industry go hand in hand as both are on the same path for global acceptance. Just as the Silk Road once gave Bitcoin its first utility, the gray market marijuana industry can use cryptocurrencies to provide the initial assistance for mainstream approval. Within the non-product sections of the industry, accepting Bitcoin could greatly help their customers, who are likely to move deeper and deeper into cryptocurrency. Helping both the Crypto Industry as well as the Cannabis Industry to grow together. A Win-Win Scenario.
At the same time, the cryptocurrencies that are first to jump into the cannabis bandwagon will have a huge advantage. Bitcoin, Ethereum, EOS, Ripple’s XRP are all major players that can come into play in the given future. Keeping in mind of the current growth rate of the Cryptoindustry, cross-border transactions will soon be hassle free allowing Cannabis industry to take full utilization of this.
This collaboration between two of the most revolutionary industries of the 21rst century just might be the key to ensure their global acceptance.
However, this cannot happen until people start looking at both industries for what they are today rather for their grey past.
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