The Cash Conundrum in Colorado’s Cannabis Industry
It’s high time we address a pressing issue in Colorado’s booming cannabis market: the cash-heavy operations stumbling over their own greenbacks. With many banks hesitant to open their vaults to businesses dealing in marijuana, dispensaries have found themselves swimming in cash, not unlike Scrooge McDuck — except there are no elaborate swimming pools involved, just anxiety over security.
Robberies: The Dark Side of the Green Rush
As if running a dispensary wasn’t stressful enough, criminals have decided to crash the party. Armed robbers have been using everything from firearms to axes, a circular saw, and even bear mace to pilfer pot shops. In the words of Denver District Attorney Mitch Morrissey, “You hit a 7-Eleven, you’ll get 20 bucks. You hit a dispensary, you’ll get $300,000.” It’s not just about the weed, folks; it’s about keeping your head on your shoulders too.
The Rise of Potcoin: A Solution in the Making?
Enter Potcoin, a digital currency borne out of desperation for legitimate financial transactions in the cannabis world. Launched in January 2014, Potcoin aims to break the cycle of cash-only sales at dispensaries, enabling customers to buy their favorite strains without the bulk of cash in their pockets. So far, online vendors like Bitcoin Seedstore and Smoke Cartel have jumped on the Potcoin bandwagon. But walk into your local shop? Not quite yet.
Potcoin ATMs: The First Step?
On April 20 (because, of course, it’s 4/20), two Potcoin ATMs popped up in Denver, allowing users to deposit cash in exchange for digital coins. At the current rate, 420 potcoins translate to just about $2.51. I mean, if anyone’s counting pennies in the cannabis industry, that’s a lot of bud for your buck!
Banking on the Future: Will Potcoin Survive?
However, the winds of change are blowing. If banks begin loosening their reigns and embracing cannabis-operated businesses, Potcoin might find itself lighting up less than it hoped. Already, regulatory entities like the Financial Crimes Enforcement Network have provided a framework on how banks can interact with cannabis businesses — provided these operations aren’t selling weed to minors or running off with the cash (obviously).
The Potcoin Puzzles Ahead
Is Potcoin a flash in the pan or a money-making machine just waiting to take off? As the federal government continues to relax laws and make strides towards accepting marijuana, the fate of Potcoin may just hinge on how quickly these changes unfold. So, will this digital currency blossom or evaporate? Share your thoughts below — if you can resist the munchies long enough!
