Despite being legalized in all 50 states, marijuana and cannabis are still not federally accepted. Therefore, banks usually do not handle any of their finances.
If a dispensary uses a conventional banking network to manage its finances, it is considered money laundering. And both the bank and the dispensary may have to face the repercussions.
Well, this is certainly not good news.
For years, dispensaries have been forced to accept cash payments for all their transactions. But, it is changing now.
Thanks to cryptocurrencies, dispensaries can now accept digital payments for their sales.
Wish to learn how?
Keep reading and fill yourself with all the information.
Why Isn’t Cash The Ideal Mode Of Transaction?
Running a business with now access to credit or debit payment methods isn’t easy. It limits access to other financial services such as loans for companies.
Besides, cash-only businesses are an easy target for thieves. And in case a robbery happens, the business might also not be able to file an insurance claim.
On top of all this, managing payrolls, paying rents, and many other transactions are also affected.
How Can Cryptocurrencies Help Dispensaries?
In the absence of traditional banking services, cryptocurrencies can offer a feasible solution to dispensaries.
It is noteworthy that cryptocurrency exchange is not regulated the same way as a bank. This makes it easier for companies to open their accounts with them.
In light of this, here’s how crypto can help dispensaries:
- Digital Transactions: Accepting weed cryptocurrency as payment means cash-free transactions for dispensaries.
- Lower Fees: The banks that do offer financial services to dispensaries usually charge a very high fee. In contrast, crypto transactions provide similar services at lower prices. Besides, there is no premium for dispensaries in comparison to conventional banks.
- Transparency: There are several compliance protocols to be followed by dispensaries. The cryptocurrency offers a secure and tamper-proof ledger system. And it could help dispensaries to track their supply chain at each step.
- International Payments: Dispensaries often deal with overseas suppliers and customers. And, this could potentially create a problem if they are accepting or making cash-only payments. But, with cryptocurrencies, this is no hurdle.
Cannabis Industry And Crypto Technologies May Be Natural Fellows
There is a lot in common between these two industries.
For example, both these trades are now entering the mainstream after operating for years on the sidelines.
Perhaps, both these industries can help out each other in gaining their share of the market capital.
The cannabis industry may pave the way for other sectors to embrace the technology by embracing digital currency. Likewise, in return, the cannabis industries can access financial services and get rid of cash-only problems.
In short, they can become the best partners to help each other out.
On this note, it won’t be wrong to say that the industry dynamics are changing for these trades. While dispensaries can now leverage the power of financial services that they were denied earlier. On the contrary, cryptocurrencies can quickly gain traction by evolving and eradicating the usual problems with fiat transactions.
So, it is a win-win situation for both.