Digital Currency for Marijuana Transactions

Bitcoin has been in the news lately, but have you tried cryptocurrencies?

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Our Los Angeles marijuana lawyers have seen the development of a digital currencies that allow for an alterative way to pay for substances – legal or illegal.

The goal of this payment method is to provide a safe and secure cash alternative to industries that typically operate on a cash-only basis.

The development of such currencies could change the face of the drug war in a big way. But they could also offer a convenient way for legal marijuana users to pay for their medicine without lugging around large amounts of cash.

The problem for legal dispensaries has been that banks refuse to do business with them. This forces legitimate businesses to resort to large cash transactions, which are logistically difficult and more vulnerable to theft.

Two of the currencies are called DopeCoin and PotCoin, no ambiguity in the names. These currencies will be the first dedicated the business of the drug trade – these types of currencies would not be near as intriguing if the United States banking industry had not shunned legal marijuana businesses.

Creators of this currency believe it will be accepted as the standard across various businesses involved in the marijuana industry. Creators of the new currencies do not claim they were created only for the exchange of illegal substances.

With dispensaries in Colorado making $14 million in revenue over the first few months of legalization, there is clearly huge potential for digital crpytocurrencies.

It is anticipated that state recreational and medical marijuana sales combined will reach almost $1 billion in the next fiscal year. Approximately $600 million of that revenue is estimated to be the result of recreational sales. One can only imagine the amount of money that could be generated in a state much larger than Colorado – a state like California.

Recent studies indicate that the marijuana industry could be worth as much as $10 billion by the year 2018 so the potential for growth is certainly there.

Although retailers have not yet committed to utilizing PotCoin, it’s not because they are not interested but because the company hasn’t been around long enough to make an impact – it launched on Jan. 21, 2014.

The creators of these currencies claim that the industry will see a dramatic shift in just the next couple weeks. Supporters of the new digital currencies acknowledge that the currency’s volatility is a concern. However, as the marketplace expands it will ultimately stabilize the new currencies.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 714-937-2050.
More Blog Entries:

Obama Admin Pot Policy Dazed, Confusing to Many, February 23, 2014, Los Angeles Marijuana Lawyer Blog
Lawmakers Debate Tighter Marijuana Laws – In Colorado Too!, February 19, 2014, Los Angeles Marijuana Lawyer Blog
Additional Resources:

PotCoin And DopeCoin: Meet The Two New Bitcoin-Like Currencies For Buying Marijuana, March 19, 2014, Los Angeles Marijuana Lawyer Blog