Bitcoin Forum

Even though Marijuana is now legal in numerous jurisdictions, there are many that are finding it tough to operate their businesses. Banks are still reluctant to offer the firms their services and operating with cash only puts the owners up to risk of robbery.

https://www.coinbureau.com/blockchain/blockchain-technology-set-stimulate-marijuana-industry/

How is blockchain tech and cryptocurrencies bound to impact the industry. Can legal pot businesses operate their businesses with cryptocurrency payments? What about many of the numerous ICOs that have issued tokens and raised funds for their decentralised projects.

Interested to hear your thoughts.

It seems to me that to associate money with the drug trade is impossible. I know a lot of drug addicts and none of them buying drugs with bitcoin. All buy this poison for Fiat. The blockchain can do to make the world more democratic. This is probably more afraid of politicians than the terrorists around the world.

No, he is talking about the now-legal marijuana business and the reluctance of some banks to offer their service to industry operators which may not be surprising at all since the industry is still new and there can some questions from the banks that have not been resolved yet. I have seen many ICO projects centering on the marijuana business and I guess those projects can help many entrepreneurs who are into the legal trade of marijuana. Anyway, as times goes on, we should expect that the banking industry would be opening more of itself to this flourishing and lucrative trade.

That's been the promise of Potcoin and all the other cannabis-related cryptocurrencies over the years. I still don't think we are at the point where it's feasible at scale, but we're getting there. I'm curious whether Bitpay is working with any marijuana dispensaries. I haven't seen any dispensaries accepting Bitcoin. With legalization at the state level in California taking effect next year, maybe Bitpay is a possibility.

As an industry-wide move (business-to-business), it simply won't be possible until more of the economy starts "getting off the grid" and moving their balance sheets partially or entirely into cryptocurrencies. I don't see that happening for several years.

Regardless of anything else, brick-and-mortar businesses can't depend on commodity speculation (and a never-ending bull market). They'll need to hedge (and also account for the 3rd party risk of doing so). In time, I think a more decentralized stable/pegged crypto will emerge. I'm not sure how it'll work, but people smarter than me are trying to figure it out. That will be a game changer for businesses who have significant overheads in fiat.