Nov 18, 2021
The Problem with State and Federal Law Within the Cannabis Industry
The Law
Medicinal cannabis, a drug that can be purchased in up to 36 states and four territories across the United States of America, whilst it’s friendly cousin ‘non-medical’ is available in 18 states and two territories.
So, surely with all this legalisation, everything is running completely smoothly within the cannabis industry, right?
Right?
Well, not exactly.
Whilst state-to-state laws surrounding cannabis-based products continue to change for the better and join the rest of the 21st century, the federal government’s stance remains firm. To possess, cultivate or traffic cannabis carries criminal charges.
This confusion has led to various issues within the sector, the biggest of all being the banking problems companies face on a daily.
The Issue
Legal cannabis businesses such as Quannabu’s Californian based partner, Be Pain Free Global, have to deal with having their bank accounts permanently closed due to the nature of their work, despite the state of California legalising the use of recreational cannabis since 2016.
Traditional banks, JP Morgan and Wells Fargo for example, will no longer deal with these companies, whilst smaller banks charge a premium of up to 20% per transaction.
With the legalisation of recreational cannabis in California in 2016, it was billed as being the start of something beautiful. This great plant would help to grow the fifth largest economy in the world and create an array of jobs for the state.
That statement couldn’t be further from the truth, with many industry experts believing the state, and others across the US where cannabis-based product are legal, find themselves back exactly where they started.
According to research from Headset.io and New Frontier Research, there’s up to $10 Billion in cash being stored by cannabis businesses around the US due to banks refusing to deal with them.
This creates a whole host of new problems, such as cash being stored in warehouses in remote areas leaving companies open to the risk of robbery.
In California, it’s predicted 80/90% of the industry operates underground, the incentives to go legit are greatly outweighed by dealing in the ‘traditional’ methods.
The Solution
You’re probably wondering right now, so, where does Quannabu fit in to all of this?
That’s where our platform, Quannabu Pay, comes to the forefront.
Currently, a banking facilitator for the cannabis sector simply doesn’t exist.
We will be that facilitator.
By utilizing the latest blockchain technology, Quannabu Pay will allow all those across the cannabis supply chain to purchase products and make swift, frictionless payments through our B2B marketplace.
The bottlenecks the cannabis industry faces will be no more.
Stable coins such as USDT or USDC will be used to make payments, which can then be transferred back into fiat through our banking partnerships. Or conversely, put back into the Quannabu Pay ecosystem to make further payments or purchase products from other users.
From start to finish, customers can provide full documentation to satisfy their bank’s due diligence, thus allowing them to exchange profits from crypto into fiat.
It all seems so simple now, doesn’t it?
Quannabu Seminar/Webinar
On Friday the 3rd of December, Quannabu will be hosting a Webinar to discuss the development of the wide stretching cannabis industries, and how the cryptocurrency world can help to solve the banking issues faced by them!
There will be guest speakers, including Saleem Salwar, Director of Californian based Medicinal Cannabis firm ‘Be Pain Free Global’, who are also a partner in our company.
If you would like to join, then please register using the link below.
Alternatively, you can join us for the live seminar at the same time and date at the address below.
Yorkshire Amateurs AFC, Southerns Stadium, Roxholme Road, Chapel Allerton, Leeds, LS7 4JG.
Register for the seminar using the link below.
Or by contacting us directly by email at ‘info@quannabu.com’.
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