In a world where cash is king and crime is rife, Bitcoin has come to the rescue of the cash beleaguered medical marijuana businesses . In the United States, marijuana is a touchy subject but there is legalisation of medical marijuana in at least 25 states and the District of Columbia. This new medical marijuana industry has a dark secret though – it is a cash only business. All Terms Cash In July 2016, the Los Angeles Times covered the cash only nature of pot stores and how they are becoming victims of robberies. They reported the killing of a 24-year old Colorado pot store guard, Travis Mason. Describing the amount of cash that is handled by these stores, the Los Angeles based newspaper wrote: “Crime statistics concerning legal dispensaries are hard to come by as the industry expands, and, understandably, operators are reluctant to talk about how much cash they can have on hand. But in a late-night Seattle dispensary break-in last year, for example, thieves got away with $100,000 in cash.” Why banks are not in love with the pot industry? The one word answer to that question is – Feds. According to Governing.com, Federal law forbids banks and credit unions from taking ‘marijuana money.’ Describing the challenges faced by Colorado’s marijuana businesses, the website further states “All the cash floating around makes cannabis businesses targets for crime,” Freedman says. “Since Colorado fully legalized marijuana in January 2014, the Denver Police Department has logged over 200 burglaries at marijuana businesses, as well as shoplifting and other crimes.” Cash only transactions are a headache One of the fundamental problems is that businesses that work in the medical marijuana field can’t accept credit cards or write checks. While at the state level, these businesses are legal, the federal laws […]
