Arizona Fintech Sandbox has accepted a blockchain-based, cannabis industry-oriented payment solution. The cannabis company Alta is a cash management solution that services licensed medical marijuana vendors and providers.

The Arizona-based financial services startup, Alta aims to create a stablecoin that is pegged 1:1 with the US dollar. It will set up trials for its member onboarding and remittances platform in its sandbox testing phase. The primary target will be enabling users to pay for goods and services via stablecoin and not fiat money. However, the current federal regulations prohibit bank involvement with the marijuana industry. So, this leaves businesses searching for alternatives. The regulators of Arizona Fintech Sandbox believe Alta’s dollar-pegged-stablecoin and payment network are capable of providing such an alternative in addition to a healthy candidate for fintech development.

As per the sources, Crypto businesses and state governments are striving to bridge the gap that exists between the financial services and cannabis industries. In March 2018, Arizona became the first state in the US to introduce a regulatory sandbox. The legislation behind the sandbox allegedly received sponsorship from Republican Congressman Jeff Weninger. He, thus welcomed Alta to the program, noting the huge potential for stablecoin technology in cash-intensive businesses.

Many big firms have implemented blockchain-based payment solutions recently. LINE Pay has partnered with Visa, an American payments service. to work on a blockchain-based payment service.