Cannabis’ status as a Schedule 1 drug greatly impacts the ability of cannabis businesses to utilize the banking system. Not only can most income from cannabis be considered the gains of a crime and conspiracy, real property can become forfeit in the course of a federal criminal case. Even attempting to open a bank exposes these businesses to considerably more risk, as the banking system is Federally regulated. Simultaneously, the cannabis business is the fastest growing sector of the economy.
This leaves the cannabis industry with a considerable challenge - what to do with all the cash? Vast amounts of cash are hard to maintain and manage, forcing cannabis businesses to assume inordinate risks that firms in other industries do not have to face. Even the U.S. Small Business Association identifies these issues with cash-only businesses, including the considerable amount of time required for documenting these type of transactions for the IRS. One more aspect of this economic situation is that there is virtually no access to traditional credit.
As the cannabis industry grows, previously unassociated industries are finding that business in cannabis requires considerable ingenuity from the related and supportive businesses. Those involved in cryptocurrency believe they have the best solution to address the difficulties associated with cash and credit in the burgeoning cannabis industries. Cryptocurrency is a sort of digital currency, which uses a decentralized and encrypted set of data to create, manage, and balance a digital form of.
Many people in the cannabis ecosystem are also supporters of cryptocurrency, as it addresses the difficulties of cash management. Further, cryptocurrency has traditionally very low fees, it’s decentralized and censorship-resistant, as well as being 24/7 in nature.
The Crypto Cannabis Conference was created to build a new network of relationships bridging these two uniquely positioned industries together. Attendees from the marijuana industry can learn the basics of Bitcoin and other cryptocurrency mechanisms, while those in cryptocurrency can learn techniques of deploying and growing a cannabis company.
Entrepreneurs from both sides of this merging industry are welcome to join the after party with special guests on Saturday, October 22nd, from 7:30 pm to 10 pm. This collaborative effort can help both industries grow, further, together. You can check out more information on their site CryptoCannabisConference.com or find the schedule here.