Cannabis & blockchain: Bad romance or a perfect match?

Gowling WLG | Shaela W. Rae | October 17 2018

coins being watered - Cannabis & blockchain: Bad romance or a perfect match?Black market. Dark web. Illicit. Underground market. Illegitimate. Illegal. Organized crime. All words used to describe the illegal cannabis industry, until October 17, 2018 that is. Once it is legal to buy, possess or use cannabis for recreational purposes the discussion around the use of cannabis and how to procure it changes from hushed words in a corner to an open conversation in public. But is the public ready to embrace a substance that has been seen as illegitimate and "bad" for so long? If the experience in the US can be relied upon, the answer is "yes".

According to investment bank Cowen & Co., the cannabis industry is expected to reach sales of approximately US$75-billion by 2030, up from US$6-billion in 2016, as the drug is more socially accepted. In the US today cannabis is illegal on a federal level as it is classified as a Schedule 1 narcotic, but cannabis is legal in 30 states for medicinal purposes, and in 9 states and Washington, DC, for recreational use for adults over the age of 21.

See:  Canabis Company True Leaf Raises $14 Million in Cross Border US – Canada Crowdfunding Offer

Some Canadians' views on cannabis seem to be similar to the views on alcohol during the prohibition era in the United States. For example, in the prohibition era people used slang terminology to describe alcohol, similarly how the terms, "weed", "pot" and "dope" have been used to describe cannabis. Alcohol was attributed as a cause of moral decay and criminal activity. Academics have debated whether alcohol caused an increased criminal activity during that era, as well as whether there actually was an increase in crime or rather just a perception of an increase in crime. Some cannabis anti-legalization protestors believe that the cannabis industry is surrounded by crime since they view cannabis as a gateway drug that will lead to illegal drug use and illegal activities.

The question is, how can the cannabis industry gain more transparency and legitimacy? While legislation and regulation is turning an illegal industry into a legitimate one, blockchain technology may be able to help. Health Canada's tracking system is designed to track the plant from where it is grown to where it is sold to prevent legal cannabis from being diverted to the illegal market. While the tracking system is not based on blockchain technology, blockchain may be one technology that could help cannabis companies comply with the legislative reporting requirements.

Like cannabis, the blockchain industry has also suffered from a stigma, often arising from a fundamental misunderstanding of how the technology works, paired with a conflation of concepts and terminology such as blockchain, cryptocurrency and Bitcoin. Cryptocurrencies and anonymous buyers are often found in the same sentence as dark-web markets and illicit activity. Given this narrative, the natural inclination is to assume that partnerships between the cannabis and crypto worlds are a recipe for bad news in a domain that requires more transparency, not less. But there is a major flaw in this line of thinking, and here it is in simple terms: crypto ≠ blockchain ≠ Bitcoin. Just because some bad guys use cryptocurrency to do bad things, doesn't mean it is inherently evil. If that were case, we would have to conclude that money in general is inherently evil.

See:  U.S. pot industry: High tech, high finance, and high times

Blockchain, a general term for the distributed ledger technology upon which cryptocurrencies such as the popular Bitcoin (one type of cryptocurrency out of hundreds) are built, is completely legal, completely legitimate, and in fact, may be considered one of the most important technological innovations of the past decade. Blockchain offers a new way to store and record data in such a way that its accuracy is constantly confirmed by all stakeholders, and transactions are able to take place automatically and instantly. In theory, what makes blockchain so valuable is that its inherent design structure makes it an immutable, accurate record of transactions that is virtually tamper-proof.

What does this mean for the cannabis sector? Despite the legalization of recreational-use marijuana on the horizon in Canada, many major financial institutions still won't touch the cannabis industry, leaving players in that world to rely mostly on untraceable cash transactions. What better way to introduce security and transparency into the cannabis sector than by integrating payment platforms based on blockchain technology?

Continue to the full article --> here

 


NCFA Jan 2018 resize - Cannabis & blockchain: Bad romance or a perfect match? The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Cannabis & blockchain: Bad romance or a perfect match?FF Logo 400 v3 - Cannabis & blockchain: Bad romance or a perfect match?community social impact - Cannabis & blockchain: Bad romance or a perfect match?

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Cannabis & blockchain: Bad romance or a perfect match?




Reuters | Douglas Gillison and David Shepardson |  Feb 1, 2023 President Joe Biden on Wednesday unveiled fresh efforts to slash credit card late fees and drive down the prices that Apple Inc and Google parent Alphabet Inc charge on mobile app stores. Speaking at the White House, Biden also called on lawmakers to ban "junk fees" he said jacked up costs for consumer services such as accommodation, concert tickets, mobile plans and air travel, in which officials said air carriers can charge family members extra to be seated next to young children. The move is part of a larger policy drive to promote competition in consumer markets, officials said. Biden, The bottom line is these unfair fees add up. It's a basic question of fairness See:  CFPB: US Consumer Agency Announces Open Banking Rule As part of the initiative, the Consumer Financial Protection Bureau on Wednesday proposed a rule to ban "excessive" fees that credit card issuers charge for late payments, something the bureau estimated costs consumers $12 billion a year. The CFPB said the rule would cap late fees at $8, whereas officials estimate they currently average $31, something that could represent as much as $9 billion in ...
Read More
Freepik flaticon credit card fees - Cannabis & blockchain: Bad romance or a perfect match?
CoinDesk | Brandy Betz | Feb 2, 2023 Analysis shows crypto startups only raised $548 million last month (January 2023) plunging 91% year over year. Venture capital (VC) and other investments in privately held crypto startups amounted to $548 million last month, a huge drop from $6 billion in January 2022, according to data compiled by CoinDesk. The number of transactions shrank to 62 from 166, and most of the 2023 deals were for smaller, early-stage companies. See:  FT Partners Jan 2023 Blockchain and Crypto Market Update Report Funding rounds can take months to finalize or close, and some of the investments reflected last month were likely already raising money when the FTX collapse started in early November. The coming months will show exactly how much investment capital dried up after the FTX scandal came to light. FTX’s demise created doubts about the whole centralized exchange (CeFi) model of trading crypto, and persuaded some that decentralized finance (DeFi) and decentralized exchanges (DEX) are the better way forward. CeFi deals sinking 99% to $22.8 million in January 2023. Also, the CeFi firms that managed to raise money had a tie to DeFi. Continue to the full article --> here The National ...
Read More
Crypto funding by vertical Jan 2022 vs 2023 coindesk research - Cannabis & blockchain: Bad romance or a perfect match?
Bankless Times | Elizabeth Kerr | Feb 1, 2023 There has been a 32.2% decline in the usage of crypto mixers in 2022 Cryptocurrency mixers mix users' coins with others from a large pool. Therefore, making it difficult to trace the source of the funds. As a result, mixers are popular among privacy-conscious investors and criminals. Crypto mixers provide users with a way to anonymize their cryptocurrency transactions. In addition, they allow for funds to be shuffled among multiple addresses, making it harder for third parties or authorities to track the origin of the funds. See:  Analysis: Into the Eye of a Tornado | Sanctions Compliance Best Practices for Crypto Businesses Reasons for decline: One possible explanation for the decline is the increase in regulatory scrutiny. Governments worldwide are taking a closer look at the world of cryptocurrency. As a result, many users may be wary of using tools that could attract unwanted attention. Also, the rise of new privacy-focused coins is drawing users away from the mixers. Another factor could be the growth of decentralized finance (DeFi) platforms. These platforms offer similar privacy features without the need for a mixer. DeFi's popularity could be drawing users away from traditional ...
Read More
Crypto received by mixers - Cannabis & blockchain: Bad romance or a perfect match?
European Digital SME Alliance | Omar Dhaher | Jan 31, 2023 SME Experts have finalised an SBS guide on blockchain and DLT to raise SMEs’ awareness on how to appropriately use technology, adapt to EU legislation, and maintain consistency to standardisation activities The EU blockchain market is expected to be valued around €59bn by 2028. SMEs can use blockchain to grow their businesses and lead the way in digitalisation and sustainability See:  More Fintech Research and Reports To raise awareness and assist SMEs in mastering the use of blockchain technology, a task force of Small Business Standards (SBS) and DIGITAL SME experts have finalised a SBS guide on blockchain and DLT. The intended manual wishes to Illustrate four case scenarios that demonstrate how blockchain: Strengthen overall business sustainability Help SMEs in certify their quality management system Ensure authentication and trust in identification Strengthen policy response to raising and urging geopolitical concerns Continue to the full article --> here Download the 42 page PDF report --> here The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely ...
Read More
European Digital SME Alliance Blockchain and DLT guide - Cannabis & blockchain: Bad romance or a perfect match?
Fintech Magazine | Joanna England | Feb 7, 2023 Revolut has rolled out its new crypto feature to 25 million customers, via its financial super app to provide more frictionless crypto trading experiences Revolut launched the crypto feature, called Staking in the UK and EEA, effectively taking another leap forward towards its mission to build the first super app for all-things-money, and is continuing to double-down on its promise to bring greater digital currency services to the banking space. New feature unlocks extra benefits for customers investing in crypto with Revolut, giving them the ability to earn rewards for specific tokens (Ethereum, Cardano, Polkadot, and Tezos). The rewards are granted in the native token and customers can either stake their existing crypto balances for these tokens or buy and then stake the balance of one or more of the four tokens. Customers can set up a ‘stop or limit’ order so they don’t have to time the market or use the Recurring Buy feature to average out volatility. Other features also enable users to round up any spare change in a cryptocurrency of their choice, from a list of close to 100 cryptocurrencies. See:  Fintech Revolut Hires Behavioural Team to ...
Read More
Revolut crypto and staking - Cannabis & blockchain: Bad romance or a perfect match?
David Suzuki Foundation | Jan 26, 2023 Bringing Corporate Purpose into the Mainstream: Directions for Canadian Law concludes that a more solid legal scaffolding for corporate purpose in Canada is necessary and puts forward five key recommendations to make it happen. The idea of bringing corporate purpose into the mainstream through legal reform isn’t new. As the report shows, it’s already happening in places like France and the U.K. Among its recommendations, the report calls for the Canada Business Corporations Act to require a statement of purpose by a corporation’s board of directors (excluding small businesses), a “comply or explain” approach to stating that social purpose and broadening the best interests of the corporation to include impacts on the community. It also suggests amending fiduciary duty of directors and officers requiring them to pursue the purpose of the corporation with a view to its best interests. “Amending director fiduciary duty to stipulate that directors have a duty to pursue the purpose is a game-changing proposal. To put that into effect boards will need to know what the purpose of their corporation is, which arguably is essential for good governance,” says Coro Strandberg, one of the report’s editors and chair of ...
Read More
Bringing corporate purpose into mainstream 1 - Cannabis & blockchain: Bad romance or a perfect match?
Level Up Coding | Jayden Levitt | Feb 2, 2023 You Must Understand the Stanford Marshmallow Experiment. Experiment:  Walter Mischel was a psychologist who led a study on delayed gratification at Standford University (Stanford Marshmallow Experiment). In this study, a child was offered a choice between a small but immediate reward or two small rewards if they waited for a while. During this time, the researcher left the room for about 15 minutes and then returned. The reward was a marshmallow or pretzel stick, depending on the child’s preference. Conclusion: In follow-up studies, the researchers found that children who could wait longer and delay gratification for the preferred rewards tended to have better life outcomes.  Researchers measured these life outcomes by SAT scores, educational attainment, body mass index and other life measures. See:  Ray Dalio Favors an Inflation-linked Digital Asset Over Bitcoin Ray Dalio: I want to distinguish that there’s a big difference in people’s opportunities worldwide, but if you compare two people with equal opportunities. When it comes to money, it’s delayed gratification that separates them.  Once you realise that deferred gratification will improve you, you begin to count and say how many days, months, weeks, or years can ...
Read More
Flikr Oscar Thompson Ray Dalio - Cannabis & blockchain: Bad romance or a perfect match?
CNBC | MacKenzie Sigalos and Rohan Goswami | Feb 6, 2023 Binance, the world’s largest cryptocurrency exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision. “We are temporarily suspending USD bank transfers as of February 8th,” a Binance spokesperson told CNBC. “Affected customers are being notified directly.” The company said “0.01% of our monthly active users leverage USD bank transfers” and added that “we are working hard to restart service as soon as possible.” Impact:  Binance US, a unit of the company that’s regulated by the Treasury Department’s Financial Crimes Enforcement Network, said in a tweet that it’s not affected by the suspension. Thus the move applies only to non-U.S. customers who transfer money to or from bank accounts in dollars. Binance’s net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham. Binance said customers can still use other fiat currencies or payment methods to purchase crypto. For the small number affected, “we’ll have a new partner to announce for those users in ...
Read More
Unsplash Vadim Artyukhin Binance - Cannabis & blockchain: Bad romance or a perfect match?
Business Insider | Brian Evans | Feb 2, 2023 Bridgewater Associates founder Ray Dalio warned Thursday of a looming currency crisis and that an inflation-linked cryptocurrency would be safer than bitcoin. Dalio on Bitcoin:  In an interview with CNBC, he asserted that the largest cryptocurrency by market capitalization "has no relation to anything" and denounced opinions that bitcoin is a safe store of value. "It's a tiny thing that gets disproportionate attention," Dalio said. "It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange." While bitcoin has been touted as the future of currency, he said it's too unstable. And stablecoins, which have been billed as safer than bitcoin, are basically fiat currencies too, he added. Ideal coin:  "If you created a coin that says 'OK this is buying power that I know I can save in and put my money in over a period of time and transact in,' then I think that would be a good coin," he said. "So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't ...
Read More
Unsplash Michelle Spollen Canadian money - Cannabis & blockchain: Bad romance or a perfect match?
ISDA | Jan 26, 2023 The oft-repeated aphorism ‘not your keys, not your crypto’ suggests that only a party running an on-chain node and possessing the private key associated with a cryptocurrency holding can reliably be considered the owner. What defines the owner of an asset? And for a party that is not the direct owner, but holds an asset indirectly via an intermediary, what is the impact of an intermediary’s bankruptcy? These questions are generally settled in other financial markets, which have developed standards to protect indirectly-held customer assets by making them bankruptcy remote from the intermediary. The FTX collapse indicates that such norms are still evolving (or may not yet exist) in the cryptocurrency markets. When these issues are not well understood by market participants or the risks are not properly managed, unanticipated and significant loss of capital can emerge. The prospect of insolvency of a major market participant requires firms to consider how they manage counterparty credit risk, which intermediated or custodial structures are most appropriate, and whether the tools employed can be reliably enforced in a bankruptcy scenario. See:  Goldman Sachs Report: Future of Digital Assets and Crypto Winter’s Discontent ISDA is producing two papers that ...
Read More
Not your keys not your crypto - Cannabis & blockchain: Bad romance or a perfect match?

 

Leave a Reply

Your email address will not be published. Required fields are marked *

1 × four =