How the Cryptocurrency and Cannabis Industries are Working Together
The cryptocurrency and cannabis industries seem to have a lot in common – both of them face gray areas such as financial, political, and regulatory. Further, both are also trying to gain footing among mass consumer basis. Here is an overview of each industry’s developments and where the two industries intersect.
Challenges In The Crypto Industry
There are a number of challenges impacting the cryptocurrency industry. Because cryptocurrencies are fairly new, there is still a lack of regulation. Most regulatory bodies are determining where cryptocurrencies fit in, if they do, into the regulatory scheme. Due to the regulatory questions surrounding cryptocurrencies, their use tends to be concentrated in various areas, such as Puerto Rico and Malta.
When used outside of these enclaves, it seems to be challenging to get financial institutions and retailers to accept them. These issues further prevent the adoption of cryptocurrency and in turn, widespread use as well. Over time, as there starts to be more clarity regarding cryptocurrencies, things may be well on their way to changing.
There may be a bright spot though when it comes to access, and that’s the establishment of Bitcoin ATMs in various cities. This may increase bitcoin use outside of the main areas, but it still also does not change the issues that cryptocurrency faces with regulators and financial institutions.
Challenges In The Cannabis Industry
The cannabis industry is facing its own challenges as well. One of the most significant is legality – or rather, illegality. The lack of uniformity between the federal and state governments make dispensing and use of marijuana particularly challenging.
As for financial institutions, they have their own concerns as to lending to marijuana companies. Very few agree to offer loans or credit to such companies. This ultimately prevents cannabis companies from either establishing themselves or continuing business. The other option is to operate solely on a cash basis, which is just what many companies have been forced into doing.
How The Two Come Together
The situation concerning both crypto and cannabis seem to overlap. As a result, there is a position out there that the two should come together as they have a lot to offer each other. For example, cryptocurrencies are ideal for those who cannot secure traditional banking solutions. With cryptocurrencies, the value can be stored on the blockchain, which may be just what cannabis companies need as a financial solution.
Further, once cannabis companies tap into the financial solutions that crypto has to offer, they may be able to promote widespread adoption as well. Further, cannabis companies may have a path there as well – there are several companies that are working to provide cannabis companies with the solutions that they need. A few of these new projects include PotCoin, HempCoin, DopeCoin, CannabisCoin, and CannaCoin.
Both industries have a lot to offer each other, so it will certainly be interesting to see how the two develop together if they do realize the respective industry’s store of value.