I would like you to meet Thomas Howard, a longtime cannabis activist, and lawyer based out Illinois. Tom plans on doing a series of all things cannabis from the lawyers perspective. Look for Tom on YouTube and Facebook.
The following is a summary of his first video:
I’m Tom, and you’ve probably never heard of me. You can see me up there on youtube and it would be super sweet if you subscribed because then you’ll get exclusive access to all the video blogs on operating a cannabis business in America. The first one I did is on bitcoin.
Now, you may be asking yourself who that schmo is wearing a suit and clearly sitting in his home office before work one day. Well, that’s cool. It means you’re skeptical. Great. If you want to know more about me, just Google “Tom Howard marijuana” or “Tom Howard bitcoin”.
I got a pretty simple mission, to make sure that the cannabis industry grows into a completely legal industry all across the globe – it may take a minute. So tune in each week. And check out the recaps here.
Here’s the takeaway from the pros and cons of cryptocurrencies (or blockchain technology) used for cannabis businesses.
- Don’t have to hoard piles of cash
- Can use coins to buy and sell marijuana
- Can use blockchain to track all marijuana from seed to sale
- Need an exchange to buy and sell the coins
- Have to pay commissions on turning coins into cash
- FinCEN is letting banks get into cannabis industry
- Coin can lose value overnight, or skyrocket
- Marijuana removed from schedule 1 and coin is worthless
- Have to pay for coin technology, whereas cash is cash
I personally do not think that cryptocurrencies will provide the cannabis industry the certainty and credibility that continued a federal policy of liberalization and defunding the Department of Justice continue to deliver. In the future, the banks may offer the same services to cannabis businesses that all other businesses enjoy.
But to do that, you’ll need a merchant account. Which we will discuss next week.