Tuesday, June 12, 2018

Federal government's failure to deal with cannabis issue continuing to drive industry into cryptocurrencies

As both Congress and the Executive Branch continue to procrastinate on dealing with an issue that is growing quicker than anyone could imagine, the industry is on the verge of simply taking their ball and going home.

By this I mean that as the government makes it near impossible for banks to become involved in the lucrative cannabis industry, the big winner may end up being cryptocurrencies.

Where conventional banking has failed, technology has provided a unique opportunity that is beyond ripe for the picking. The blockchain, which makes up an online ledger where transactions made in digital currencies like bitcoin are recorded and processed, has become a particular point of fixation as a solution to the cannabis industry’s banking woes. 
Bringing blockchain to a cash-only business 
Blockchain’s ability to serve the legal cannabis industry is built upon its history of serving not-so-legal markets. “Silk Road and the dark market proves that this model works in terms of you can use bitcoin in terms of buying illicit drugs as well,” says Jeremy Clark, a scholar in applied cryptography at Montreal’s Concordia University with a particular interest in bitcoin and other cryptocurrencies. “Now, because blockchain is so popular, everyone wants to be a blockchain solution,” he continues. The cannabis industry is no exception. - IBM
Perhaps the most ironic thing about cannabis in the 'Make America Great Again' storyline is that this new and potentially lucrative business is ready to explode, but the government is still fighting it tooth and nail from growing.  And in the meantime President Trump is going after pretty much dead industries like steel and aluminum that would make a very limited dent to the trade deficit because they can always be made cheaper elsewhere, just like in our energy sector with LNG.

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