The Shift Towards Cashless Cannabis Transactions
In a remarkable development, Nevada’s cannabis landscape is about to undergo a dynamic transformation. The digital asset market data firm, Brave New Coin, known for its pricing infrastructure, is teaming up with Multichain Ventures to facilitate cashless marijuana purchases via cryptocurrency. This move aligns with a bill proposed two years ago which aims to establish a cashless payment system for cannabis businesses, marking a significant step forward in the industry.
Why Cashless Payments?
The underlying purpose of this legislation is clear as crystal: it intends to enhance financial transaction oversight among cannabis establishments and their consumers. According to the bill, this cashless system is designed to:
- Allow regulators to monitor financial transactions.
- Promote public safety and welfare by reducing the risk associated with cash handling.
- Create a complex yet fascinating financial environment for both consumers and businesses.
The Journey to Implementation
While the bill doesn’t explicitly state that cryptocurrency must be used, it does task Nevada’s State Treasurer’s Office with launching a pilot program for what it calls “closed-loop payment processing systems.” Brave New Coin has expressed that very soon, customers could trade their cash for tokenized credits, paving the way for a seamless purchasing experience. This shift will not only modernize the payment process but also provide operators with a much-needed relief from traditional banking limitations.
The Stumbling Blocks of Traditional Banking
For cannabis businesses, navigating the world of finance resembles climbing a greased pole. Fran Strajnar, founder and CEO of Brave New Coin, noted, “Most business operators take traditional banking for granted, but the cannabis industry is cut off from most financial services in the U.S.” This situation often obliges operators to develop innovative solutions to handle their cash. Getting rid of cash? That’s the dream!
The Broader Picture
While cannabis may be legal in Nevada and other states, it faces federal constraints that complicate financial processes. Nationwide, cannabis sales likely surged past $20 billion by 2020, with Nevada alone contributing approximately $600 million to that figure by the end of September of the same year. Blockchain technology is already making its mark in the cannabis industry, with various firms exploring blockchain trackers to ensure supply chain transparency from seed to sell.
Ultimately, while many states wrestle with regulations, Nevada is making waves by potentially setting the stage for a crypto-powered cannabis ecosystem. Get ready, world; it looks like cannabis payments are going digital!
