SinglePoint Embraces Bitcoin to Solve Cannabis Payments
June 14th, 2017
News, Top News
Most cannabis businesses don’t accept credit cards due to federal banking regulations. While more than half of U.S. small businesses avoid credit cards due to merchant account fees, there’s strong evidence that accepting credit cards can encourage consumers to spend more and there’s no doubt that the payment method is more convenient. The good news is that some companies are embracing next generation technologies to make electronic payments cheaper for businesses and more convenient for consumers.
In this article, we will look at SinglePoint Inc. (OTC Pink: SING) and its partnership with First Bitcoin Capital Corp. (OTC Pink: BITCF) to bring effective payment solutions to the cannabis industry.
What is Bitcoin?
Bitcoin is a cryptocurrency and digital payment system with over 100,000 merchants and between 2.9 million to 5.8 million users worldwide. Unlike banks and credit cards, Bitcoin is a peer-to-peer system whereby transactions take place without an intermediary. The transactions are verified by network nodes and recorded in a public distributed ledger known as a blockchain, which maintains complete anonymity and has minimal transaction fees.
Many experts believe that Bitcoin could play an important role in the cannabis industry by sidestepping federal regulations surrounding payments. Unlike a commercial bank, Bitcoin is a peer-to-peer system that doesn’t have to comply with federal banking regulations. This means that Bitcoin could be used to quickly and efficiently process transaction, while providing businesses with a ‘bank account’ that can be easily converted into cash.
Bitcoin began as a relatively obscure technology, but since then, it has evolved into a widely accepted payment medium. In fact, Japan recently recognized it as a legal payment method while large retailers like Overstock.com already accept it as a payment method. With the cannabis industry projected to reach $24 billion by 2026, according to New Frontier, there’s a significant opportunity to apply Bitcoin to the new emerging market.
Developing a Solution
SinglePoint recently announced a joint venture agreement with First Bitcoin Capital whereby the two companies will jointly develop and distribute a viable payments solution using blockchain technology. First Bitcoin Capital will contribute its extensive knowledge of blockchain technology, while SinglePoint will leverage its deep history in distribution to commercialize the technology at dispensaries and other point-of-sale locations.
The two companies didn’t provide an in-depth overview of their proposed solution at this point, but they did mention that the solution would enable the customer experience to go unchanged. Customers would still be able to pay with a credit or debit card at a medical or recreational cannabis dispensary. The behind-the-scenes technology platform would effectively convert that payment into Bitcoin in order to avoid problems with commercial banks.
“In January 2014, SinglePoint announced and started working on a bitcoin payment solution, shortly after we recognized the issue of minimal user adoption of digital currency,” said SinglePoint CEO Greg Lambrecht. “The payments industry has rapidly changed since that time. There is now tremendous momentum and demand for bitcoin acceptance as an alternative form of payment. This joint venture with First Bitcoin Capital is perfect timing.”
SinglePoint Inc. (OTC Pink: SING) represents a compelling investment opportunity in the cannabis payments space. With its new joint venture, the company is uniquely positioned to capitalize on the cryptocurrency space and its potential within the cannabis industry. Investors may want to take a closer look at the stock with its modest sub-$20 million market capitalization, particularly given its existing marketing business and connections in the industry.
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