Cannabis companies have been making headlines for hitting record sales almost every month. This surge in interest ushers in the golden era of cannabis firms that have long fought misconceptions and regulations to inform the public and highlight its medical benefits. One industry that could help cannabis companies go to the next level is the cryptos.
Like cannabis firms, crypto companies have also enjoyed a surge in popularity in recent years. The values of Bitcoin, Ethereum, and other cryptocurrencies have hit record levels, which helped feed the hype among cryptos. The different applications of the blockchain technology, the backbone of crypto companies, were also instrumental in its rise in popularity.
360 Blockchain CEO Jeff Koyen, in an interview with Proactive Investors, explained why cryptos and cannabis are “perfect” partners. Because blockchain acts as a third party ledger, it can help cannabis industry as a preferred method of payment for cannabis products. The security offered by blockchain eases worries about fraud and funds channeling back to cannabis black market.
There are still risks involved but they are lessened with the collaboration of cryptos and cannabis companies. Although more and more U.S. states are legalizing the use of marijuana for medical and recreational purposes, regulations still vary in states, and challenges in terms of marketing and communicating product benefits may still prove tough to crack.
However, the possible merging of cannabis and blockchain is seen to solve some of these issues. According to Entrepreneur, IBM first offered the idea to the officials of British Columbia, Canada, as a way to monitor sales of marijuana products from cultivation to sale. This opened the ideas of other cannabis companies, which followed IBM’s heed.
One of the companies taking advantage of the potential of cryptos is PotNetwork Holdings, Inc. (OTCMKTS:POTN). The company is selling top quality cannabis products via its subsidiary Diamond CBD. POTN recently announced its new venture on the crypto market with the launching of a new subsidiary called Blockchain Crypto Technology Corp.
PotNetwork Holdings President Richard Goulding admits the opportunity to expand in this new area is just too good to pass up. With that, the company has purchased a mining facility with 115 dedicated mining rigs. This will enable it to handle transactions for its future CBD coin.
Budbo is also getting on the crypto-cannabis collaboration. Bitcoinist reports that Budbo has been likened to ‘Tinder of cannabis’ because users can swipe different cannabis strains, pull the idea on the ones that they like and instantly find the location of dispensaries where it is offered. Because of this, the app has amassed more than 75,000 active users. Budbo is utilizing blockchain technology to implement order in stock inventories of dispensaries.
Users of Budbo app can access the various information with the use of BUBO, which is the company’s utility token. It is much a two-way process wherein information is secured with the exchange of BUBO.
The use of cryptocurrency in cannabis market is crucial because it means inclusion to other groups all over the world. According to a Hackernoon article, the use of bank accounts is still prohibited in the cannabis industry because cannabis remains a Schedule I drug alongside Heroin and Methamphetamine. If banks accommodate payment for cannabis, they may be accused of money laundering, and it is a major reason why it’s best for them to stay out of it.
Since banks can’t be involved, cashless transactions such as the use of debit cards or credit cards are out of the question. The use of cryptos as the mode of payment can help the cannabis industry advance to the next level with added convenience in the purchase of items, added security and added information drive about the misconceptions of the industry.