Billionaire Launches First Stablecoin Pegged To Cannabis, Swissx Bank of Cannabis and SWX Coin
Alkiviades David, a billionaire from Greece, has recently decided to create the first stablecoin in the world that will have its price directly pegged to the price of legal cannabis. While most stablecoins are linked to fiat currency, this one is following a very different route.
The investor will launch the new token via its company, The Swissx Bank of Cannabis, which is based in Switzerland and the Caribbean. The token will be called SWX Coin, it will be based on the technology of Bitcoin and pegged to the price of the hemp flower.
According to the official press release, the Swissx Global Hemp Exchange will act as a secondary market for the tokens and futures will also be sold there.
One of the main ideas of the stablecoin is to provide a secure and tokenized way to indirectly invest in the cannabis market. By holding the tokens, the investors can get a stake in the market without actually needing to buy the product directly at it is not legal in many countries. The token will be backed by $750 million USD worth of hemp seeds and $250 million USD worth of Swiss francs.
A part of the initiative will be the “The Farmer’ Wallet”, which was created by a cooperative of farmers involved with the company. They will be paid in SWX Coins for their services and can redeem the tokens for cash at any time in banks related to the company.
David, which is also one of the co-owners of Coca Cola, affirmed that the idea was to optimize the legal cannabis industry and to create new opportunities for investors. He hopes that his new company will be a resource for the industry and that it can help the cannabis business to continue to be one of the fastest-growing industries in the world for a long time.
According to research cited in the press release, the cannabis sector will be worth $24 billion USD in the United States alone by 2023, so investing in it now is a great idea.
Curiously, the consumption of cannabis in Switzerland is not fully legal. For a product to be sold, it needs to have under 1% of THC on its composition. However, the market for these products is basically huge.
Some of the partners of the company include Denzil Douglas, which has worked on St. Kitts & Nevis before and, surprisingly, Narendra Modi, the president of India. According to David, he was a partner in other enterprises and supported the initiative.
Cryptocurrencies and cannabis are certainly a very profitable combination. Both industries are seeing huge returns in this decade and are bound to attract many investors because of this.