In a recent press release shared on September 11 with Cointelegraph, a Californian city official has become the first politician to make use of crypto in buying cannabis. The announcement had it that Ben Bartlett, who is a member of Berkely City Council used Stablecoin Universal Dollar and Bitcoin Cash to purchase marijuana.
It is said that he made the purchase at some dispensary in Emeryville known as Ohana cannabis. Cryptocurrency enthusiasts have long waited for active cooperation and transactions between them and the cannabis industry. Their dream seems to be coming true as this purchase by the official was a demonstration on the crypto-financial technology.
The live demonstration was conducted by Blockchain Advocacy Coalition and another blockchain company Cred.
Leveraging Cannabis Tax Returns Using Stablecoin
From the press release, the Blockchain Advocacy Coalition looks to sponsor a new bill. This bill will allow California to receive cannabis taxes via stablecoin. They say that it solves a problematic banking issue, and it also provides a broader platform for the adoption of digital money.
Currently, it is estimated that over 70% of state-approved cannabis is not banked. The firms are having difficulties transacting with financial institutions. California looks to improve on its infrastructure and ease the challenges facing the cannabis industry.
The city official said that by having a cashless mode of payment for cannabis tax, the bill would assist in reducing costs and safety concerns for businesses and cities.
Green Rush Industry Enhancement via Cryptos
Digital innovations have been California's focus of attention. There are epicenters such as Silicon Valley that pioneered for the legalization of cannabis for medical use. The US politician said that a cashless tax remittance system is the way to go in the 21st century (Green Rush Industry).
After the demonstration, the council member told Berkley City Staff to have a report drafted that shows clearly the significance of using digital currencies in the cannabis industry. Ohio was applauded back in 2018 for accepting Bitcoin to be used for tax liabilities for enterprises. Other states are pursuing the same route but not yet had a breakthrough.