At the intersection of technological advancement and societal change, cannabis and cryptocurrency have become intrinsically linked, providing a glimpse at the future of two emerging industries. On one hand, new legislation and improved societal perception has provided new opportunities for cannabis-centered businesses across the country; on the other, blockchain technology and cryptocurrencies have taken center stage, changing the way that we do business and interact on a financial level. This raises the following question: how can crypto help budding cannabis businesses overcome challenges associated with banking, payment processing, reporting and tracking?
While New Jersey’s recent legalization of cannabis was a victory for many consumers statewide, it was not a panacea. Federal law deems cannabis an illicit Schedule I Controlled Substance, creating banking, payment, and access to capital issues within the industry. Despite statewide legality and immense public support, businesses are constricted by extra expenses and over-complexity, and, in some cases, are considered completely impractical.
On August 5th, the New Jersey Society of Certified Public Accountants (NJCPA) held a conference to discuss these issues and their potential blockchain-based remedies. Led by moderator Melissa Dardani and featuring MacguyverTech’s own Steve McKeon alongside a panel of valued experts, they discussed the challenges and benefits that would arise within a crypto-based cannabis industry.
To implement this financial system, cannabis businesses would need to find a way to remain connected to traditional finances to ensure compatibility with other businesses and existing financial technology. However, if managed correctly, this challenge could be overshadowed by the overall advantages provided to both the cryptocurrency and cannabis sectors. Crypto would receive much-needed support toward being seen as a viable payment option, while the cannabis industry would gain improved accessibility to the U.S. financial system.
Although the future has not yet arrived and a plethora of challenges remain, innovations within crypto and cannabis have foreshadowed what is to come: improved quality-of-life, economics, and financials for businesses and individuals alike.