Can Digital Currency Solve Marijuana’s Cash Problem?
As our readers know, banking is one of the greatest challenges facing the marijuana industry in California and other pot legal states today. Financial institutions’ reluctance to deal with the pot industry -- still considered illicit by the feds -- has rendered it a nearly all-cash trade. The consequences are both cumbersome and dangerous.
To solve this puzzle, a number of jurisdictions have flirted with the idea of creating their own public banks. That would be a Herculean undertaking in and of itself. But what about digital currency? Could electronic money solve marijuana’s cash problem?
Cryptocurrency company Dash sure thinks so.
Seeing an opportunity to gain access to a $6.7 bln market, the digital currency Dash partnered with Alt Thirty Six in April 2017. The Dash network, through its decentralized self-funding mechanism, is paying the company $496,000 to integrate Dash as a payment option in the cannabis industry’s point of sale (POS) systems. The vendor also has skin in the game, having spent nearly $700,000 of their own money developing the POS platform.
As part of this arrangement, Dash will be the only digital currency offered by the point of sale platform. According to the budget proposal submitted to the Dash network:
“We have three major verticals identified and solidified reseller partnerships that will adopt the Alt Thirty Six + Dash payment solutions:
• Independent Software Vendors (ISV) – Music & celebrity apparel company (100+ online stores), online marketing automation partner (600+ clients), and more.
• Value Added Reseller (VAR) –IBM, Sirius Computer Solutions, Industry Specific point-of-sale (POS) Partners
• Ecommerce Retailers – Sirius Computer Solutions”