Is Cryptocurrency Cannabis’ Banking Solution?

Cryptocurrency has been trending since redditors sent the Gamestop stock soaring to the moon with their targets now set on Dogecoin. Recently, more people have come to trust the digital currency especially with the attention it has received from Tesla CEO Elon Musk. Companies in just about every industry, including Tesla, are now taking or considering taking payment in cryptocurrency. There was much speculation around Bitcoin and its last “bubble pop” in 2017 with many saying that $20,000 was the peak of Bitcoin, but it has since skyrocketed to the mid-$50,000s in early 2021. One industry that could also reap the benefits of cryptocurrency is cannabis.

US Banks won’t touch cannabis so long as it remains federally illegal (unless the SAFE Banking Act is passed). At any moment the government could seize all money involved in state legal cannabis transactions, which has forced all cannabis dispensaries to deal in cash. This has led to dangerous amounts of cash being held at dispensaries and a high likelihood of attack by armed robbers. Criminals know they can score cash at these places and have begun targeting them with many attempted armed robberies in 2020. That is why cryptocurrency can be of great use to these cannabis businesses. It can tremendously decrease the volume of cash on hand that a store has, but in order for it to grow to widespread use, it must be easy and convenient to use.

That’s where POSaBIT comes in. POSaBIT has developed a POS system that allows for customers to purchase and transfer Bitcoin to a dispensary cryptocurrency wallet as a form of currency other than cash. It’s usually the case that more people have a debit card on them rather than cash so the POS system really is convenient as it works off of a debit card. (Banks currently do not approve of the use of credit cards for cryptocurrency purchases). While most dispensaries do have an ATM in store, use of the POS is no harder and may even have cheaper associated use fees than the ATM. In POSaBIT’s March 2019 Prospectus, it mentioned that it did not have any patents for its technology but that it will be seeking some in the future for various aspects of its POS system. It also mentions that its technology does not infringe on present patents as found in its limited IP research.

We will keep an eye out for when POSaBIT applies for its first patent. Without one, the company is at risk of missing out on exclusive rights to its system and losing its early advantage. Don’t miss out and begin using the Cannabis Patent Forecast® for your investing needs. Try it out here!