Cryptocurrency as a Digital Payment System for Cannabis

January 16, 2020

Cannabis retailers everywhere are looking for cashless alternatives besides traditional credit and debit for executing transactions. Major banks are skeptical and not touching cannabis transactions as government regulations and suggestions have been far too unclear to establish protection for the banks choosing to deal with cannabis.

Cryptocurrencies were quick to arrive at the scene and there are now 8 traded cryptocurrencies for cannabis, with PotCoin being the largest at nearly a $1.5 million market cap.

Transaction platforms for cannabis-related purchases are also being implemented. Notably, POSaBIT allows customers to use their credit or debit card to purchase Litecoin cryptocurrency at a retailer to exchange digitally with a cannabis retailer. The retailer can then exchange the Litecoin back for green cash.

This reduces the risks revolving around storing large sums of cash in-house. In fact, some dispensaries have nearly $150,000 cash locked up at their stores, making for great targets for criminals.

For the safety of dispensaries everywhere and to ensure compliance, a widespread, cashless payment process is necessary.