There has been a lot of debate in recent months over the stability of cryptocurrency, however many people in the cannabis industry believe it could offer a solution to current financial barriers. A few marijuana dispensaries have already started accepting bitcoin as a viable payment option for customers.
At first bitcoin can seem quite confusing but once you understand how it works, the advantages are clear. Basically, bitcoin are essentially digital coins that are mined by advance computers solving extremely complex math equations. These coins can be deposited as real currency into an account to be used.
Today we’ll cover a few ways bitcoin has proven helpful for commercial cannabis retailers and medical marijuana dispensaries.
Accepting bitcoin at your marijuana dispensary is easier than you might think. A couple of startup companies, such as POSaBIT and Singlepoint, offer an intermediary payment solution by allowing clientele to use their credit or debit cards. A customer can simply purchase the specified amount of bitcoin at a kiosk that can then be sent to the designated dispensary checking account.
There is typically an additional $2 transaction fee when buying bitcoin but this could decrease as bitcoin becomes more widespread. This type of payment method is fully compliant with state and federal laws and requires valid ID from the purchaser. There is a $150 limit to prevent any type of illegal laundering activity. Bitcoin is growing in popularity and we expect to more dispensaries accepting this payment method in the near future.
Currently, marijuana is classified as a schedule I drug by the federal government, and this is the sole reason federally insured banks will not serve cannabis related businesses. Fortunately, bitcoin provides a completely legal way for cannabis retailers to process peer-to-peer payments.
Marijuana dispensaries can create a cryptocurrency wallet that can convert currency into bitcoin. Dealing only in cash is a logistical nightmare and incredibly high risk for armed robbery. Cryptocurrency presents a safe alternative for cannabis retailers and unlike FDIC banks or online services like Paypal, bitcoin offers a financial solution free of judgement.
Another area of the cannabis industry that can benefit from cryptocurrency is ecommerce. Platforms such as Indospace.io allow marijuana dispensaries to post online menus and accept bitcoin payment from qualified patients. All orders are subject to a 3.5% processing fee but the balance is instantly applied to the retailers crypto wallet.
Many business are still skeptical of cryptocurrency and are holding out hope that traditional financial institutions will be more accepting once marijuana is reclassified by the federal government. Indospace.io is forging ahead despite these reservations to build a sustainable system that is untouched by bureaucracy. Founder, Justin Nahin had this to say about his emerging platform:
“The mission of Indospace.io is to engage every legal cannabis dispensary in the U.S. and Canada to incorporate bitcoin into their cash management strategy using our comprehensive ecommerce automated menu and checkout system.”
While presently there aren’t any dispensary POS systems that directly integrate with cryptocurrency payment solutions, IndicaOnline is considering developing an API to make this possible. We’ll be closely monitoring the popularity of this innovative financial solution in relation to the cannabis industry, and are committed to evolving to meet the needs of dispensaries in the US and Canada.
For more information on how are cannabis POS software can optimize your marijuana dispensary, schedule a free demo with one of our qualified trainers.