Cannabis and Blockchain — Revolution Fueling Innovation
The legalization of cannabis has been a cause that has taken flight during the last years in several countries and cities around the world. What once divided society and generated conflictive debates of all kinds, is now accepted as a reality.
These are times of essential revolutions and accelerated global changes.
Postmodernity has demanded a change in paradigms and even in the fundamental structures of societies. Same-sex marriage, the legal approval of drugs, the need to regain trust in institutions are signs that something significant is happening.
Blockchain technology is another clear evidence of this, and its repercussions are as broad as its technological applications.
We want to make a recount of how blockchain can help the cannabis industry, improve its processes and ease regulatory burden now that the plant and its consumption are legal in several countries and localities.
US DOJ ‘ Cole Memorandum ‘
Most commonly known as the Cole Memo, this information was released to federal prosecutors around the time of Colorado’s legalization movement. The simple four-page document lays out the primary concerns of the US Federal Government regarding the state level legalization of cannabis.
The memo had two major focuses; preventing minors from coming into possession of cannabis and preventing financial proceeds from reaching the hands of organized crime.
As the world seeks convenience, this is no more apparent than in the cannabis delivery businesses springing up all over legal jurisdictions. These services, based entirely online, provide patients and consumers with a quick, convenient and safe way to obtain their legal cannabis.
Unfortunately, there are several unresolved issues in the delivery services.
One issue is the ease in which products can be purchased by underage consumers. As noted in the Cole Memorandum, a primary focus of legislation should be on the prevention of “distribution of marijuana to minors”.
The first step of prevention is verifying that the individual ordering is of legal age. Legacy systems are failing for verification. Selfie’s are easily tricked on early AI platforms. Regulators will want a new iteration to digital verification that is better.
Putting aside state-specific requirements, storing Personally Identifiable Information (PII) on your customers for a legal, and usually private purchase, is not a good approach.
The Bridge Passport enables consumers and businesses to remain compliant in the cannabis space, without revealing private or unnecessary information.
Simple claims can be used to verify and approve the consumer in the first step of the procurement process.
Blockchain-based Anti-Money Laundering
One prominent issue in the cannabis industry is its cash-based operations. As cannabis remains illegal on a federal level, banks refuse to do business with or even process their credit card transactions.
This creates a major bottleneck and security vulnerability in the operations of business.
Large amounts of cash and easily manipulated transaction reports creates a vacuum for the not-so-honest and outright criminal enterprises. Simple Anti-Money Laundering (AML) checks can provide you with peace of mind knowing that your suppliers and processors are not engaged in criminal activity.
Providing extensive cataloging of known bad actors, money launders and cyber-criminals Bridge Protocol can help you and your business remain safe, secure and compliant.
The Revolution Evolution
As society and ideals continue to change, innovation will continue to fuel revolution in business, culture, law and just about every aspect of our lives.
Blockchain technology enables individuals to regain control of their business, assets and most importantly their identity. Bridge Protocol continues to work with some of the fastest growing markets and sectors!