Cannabis and Cryptocurrency: Could It Work?!
Two booming markets are intersecting in the United States right now: legal cannabis and bitcoin. America’s cannabis market is predicted to reach a valuation of up to $50 billion by 2026, and the value of bitcoin reached record highs in August, surpassing $4,000 per coin and remaining above that mark as of August 19. Both unquestionably hot market segments right now, cannabis and bitcoin are now being linked thanks to the enterprising efforts of companies like SinglePoint, Inc.(OTC: SING) (SING Profile), which aims to utilize bitcoin in addressing a problem currently faced by legal cannabis businesses in the U.S.: a lack of banking options due to federal restrictions. The activities of companies like Bitcoin Services, Inc. (OTC: BTSC), Bitcoin Investment Trust(OTC: GBTC), Advanced Micro Devices, Inc. (NASDAQ: AMD) and NVIDIA Corp. (NASDAQ: NVDA) attest to the red-hot market status that bitcoin and other cryptocurrencies are enjoying right now. As a solution for currently ‘unbankable’ legal marijuana businesses, cryptocurrency seems like a perfect fit.
The new bitcoin exchange being pioneered by SinglePoint (OTC: SING) aims to provide cannabis merchants with a means of processing debit and credit card transactions independent of banks and the FDIC (http://nnw.fm/Ln5ot). This will not only allow marijuana businesses to begin conducting non-cash transactions (cash currently being the only option for most), but it will also allow customers to purchase cannabis products with their debit and credit cards, just as they would purchase any other type of merchandise at any other type of store.
SinglePoint is developing an in-house solution that would allow cannabis consumers to obtain bitcoin at any point of sale and instantly make bitcoin-powered purchases using their debit and credit cards. Users will be able to sign up prior to visiting a vendor or sign up quickly right at the point of sale. A beta version of SinglePoint’s bitcoin solution is set to debut in November at the Las Vegas Marijuana Business MJBIZCON event.
While similar solutions exist internationally, SinglePoint is an early mover in bringing this technology to the U.S. The solution will be KYC-AML compliant, and it will be applicable outside of the cannabis market and could be utilized by any kind of business desiring to offer an option for bitcoin transactions.
Though the beta launch is still a few months away, potential patrons are already signing up through SinglePoint’s website.
A cannabis-specific cryptocurrency known as $Weed was recently purchased (http://nnw.fm/M9vYG) by SinglePoint from First Bitcoin Capital Corp (BITCF) and will also be incorporated into SinglePoint’s cryptocurrency solution, enabling marijuana dispensaries and customers to complete transactions using either bitcoin or $Weed. A recent initial coin offering (ICO) for $Weed resulted in an impressive yet illiquid market cap of nearly $60 million.
While cryptocurrency wallets can be obtained at the point of sale through SinglePoint’s solution, SinglePoint and BITCF intend to implement a consumer-first approach and invest heavily in enticing customers to sign up for their cryptocurrency wallets ahead of time. This will ensure consumers can make their onsite cannabis product purchases without delay, and it also lets vendors deploy loyalty programs, special offers and more and to access consumer data regarding products.
coutesy of http://markets.businessinsider.com