Cannabis Entrepreneurs Should Use Bitcoin as Legalization Grows

This coming election, more states are set to join the legalized cannabis campaign, opting to regulating the flower like alcohol. Just recently, it has been announced that Arizona will be voting on legalizing the plant, with Massachusetts following suit. When all these states are flooded with businesses flocking to the “Pot Rush,” there will be an abundance of cash flowing through the states, creating all kinds of dangers. As we’ve said here before, bitcoin is the perfect answer to the cash problem.

Also read: Bitcoin is Not A Safe Haven and That’s OK

Cannabis Businesses Need a Bank, but With Bitcoin They Can Be the Bank

Even though states have legalized marijuana, the federal government has not, which makes banks very stand-offish towards cannabis money. This can be seen in Colorado at the moment, with the Federal Reserve letting smaller banks know they want nothing to do with this cash.

Cannabis proponents in Colorado have tried with great effort to create their own marijuana-related credit union, but have failed time and time again.

Andrew Freedman, director of marijuana coordination for Colorado said last year, “We tried to do the most with the building blocks of instructions they sent us, set up the most rigorous solution. And we still are left with confusion.”

What these businesses need to realize is that there is a global decentralized bank available to them already — it’s called Bitcoin. Even a report for Nasdaq believes Bitcoin is the answer to the cannabis industries cash issue, stating:

“Because marijuana remains illegal at the federal level, banks are loath to take dispensaries’ assets. This forces them to do business entirely in cash, which implies great personal risk. In one 2012 incident, a dispensary owner was kidnapped, tortured and mutilated by thieves who wanted to know where he kept his proceeds. The industry has a clear need for a non-physical, secure means of completing transactions and storing savings.”

With little to no access to banking services, businesses in Colorado and other legalized states are operating with so much cash that they are big targets for thieves. Those currently operating with just cash have clerks delivering bags of fiat to the state department, putting employees and revenue in potential danger.

By accepting bitcoin, businesses could curb the physical cash ratio exponentially.

2 SJC cases, one filed by us and one by our opponents. SJC rejected opponents' case and ruled in favor of ours! https://t.co/jRKhUCEnj6 — RegulateMass (@regulatemass) July 6, 2016

So, before Massachusetts and Arizona citizens decide to go all in on the cannabis industry, they should seriously consider accepting bitcoin. The cryptocurrency is not owned or issued by any government, nor is it controlled by the corrupt banking industry, and it doesn’t carry exuberant fees associated with credit card companies.

Bitcoin is the people’s money; it promotes freedom. Just like the freedom of choice to use cannabis any way you want, bitcoin gives individuals and businesses the sovereignty of their own wealth and puts money back into the hands of global citizens.

As we at Bitcoin.com have said before, “The Cannabis industry and Bitcoin environment are two of some of the biggest growing ecosystems in the world right now.” Both of them should join together and bring the power back to the rightful owners.

What do you think about Cannabis businesses working with Bitcoin? Let us know in the comments below.

Images courtesy of Pixabay.