Doing business as a dispensary, a grower, or anything related to cannabis, is a huge hassle in this country. The fact that cannabis is still prohibited under federal law makes it impossible for cannabusinesses to work with banks. Under federal law, banks and credit unions are not allowed to take cannabis money. As such, these businesses have to resort to dealing in cash. This makes it very difficult for them to do things like file taxes. Carrying such large amounts of cash also paints a huge target on their backs; dispensaries are often the victims of robberies. So it makes sense that cannabusinesses who are desperate to get rid of all that cash are turning to bitcoin.

Bitcoin is what is known as “cryptocurrency”, that is digital currency that operates independently of banks, and it is becoming increasingly popular among dispensaries and others in the cannabis industry. In Washington state, the law permits dispensaries to take either cash or bitcoin from their customers. Is this the solution that cannabusinesses are looking for? Well, yes and no.

One thing to consider is that should the federal government choose to crack down on legal cannabis, as they have been threatening to do, this could cause the feds to target cryptocurrency as well. Bitcoin transactions are also not as safe as transactions through a bank. The fact that these transactions are done online also subjects them to cyber attacks.

Another possible outcome of using bitcoin is that this could prompt Congress to pass a law allowing banks and credit unions to do business with cannabusinesses, which would certainly make life easier for everyone. 

Source: The Cannabist

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