Cannabis Industry and Cryptocurrency Is the New Power Couple
Lately, the rising interest in the cannabis industry is only matched by the increased interest in cryptocurrencies. So how would you feel if you knew that they became parents to a rambling new market — crypto backed by cannabis? This is precisely what’s happening.
Despite the recent return of the marijuana legalization bill to Congress, buyers and investors in the cannabis industry became tired of waiting for the legalization on the federal level, and with it, a more conventional banking solution for cannabis businesses.
So, they turned to cryptocurrencies, such as Bitcoin and Ethereum, to facilitate transactions.
Cryptocurrencies are the perfect choice because they are immune to federal banking regulations.
There’s even a cannabis-branded cryptocurrency on the Binance marketplace—Delta 8 (DX8). This cryptocurrency is intended for use in the cannabis industry both as an investment and for traceable cannabis transactions.
Delta 8 launched with a $1 billion market capitalization and big hopes of growth.
Other cannabis-themed tokens include:
- HempCoin (253 million in circulation)
- PotCoin (224 million coins)
- CannabisCoin (77 million coins)
So, is cryptocurrency to become the best transaction infrastructure for an industry that will be close to hitting $100 billion worth by 2026?
In any case, these are the benefits that the use of cryptocurrencies bring to cannabis companies:
- Better transparency and security of transactions
- Easy online, and international transactions
- Banking alternative
- An inflation hedge in the Forex market
What’s more, blockchain can revolutionize medicinal cannabis research because of its transparency, security, and immutability of the information. Plus it provides easy standardization of test results.
Some states are open to the idea, like Nevada, which partnered with a crypto company to provide a cashless payment system for licensed marijuana businesses.
Despite all the benefits, cryptocurrency skepticism is still at play. This is because of cryptocurrency’s volatile prices. However, the fact is that even a Reddit reputation can make or ruin you as a business, so nothing is really safe in the cannabis market.