Cannabis-backed Crypto-Currencies Gain Traction
August 15th, 2014
Policy, Top Story
A new type of virtual currency that aims to become the payment solution of choice for marijuana dispensaries, retailers, and merchants has captured the imagination of speculators who sent its market capitalization above $100,000 last week.
Cannabis Coin is a peer-to-peer digital currency that enables instant payments to anyone in the world. While the digital currency is based on the X11 Bitcoin algorithm, the developers designed the currency to let everyone get into “harvesting” of coins to promote community involvement and growth. The maximum number of possible coins is capped at 420 million.
Those looking to buy and sell Cannabis Coins can do so on the Allcrypt and C-CEX exchanges, while patients at the Herbal Wellness Center in Phoenix, Arizona can actually buy product with the coins. Since Cannabis Coins are tied to the marijuana industry, they are essentially “backed” by cannabis itself, with two strains that are in testing and will be available for purchase with the currency.
The idea of using digital cryptocurrencies within the marijuana industry makes sense, given that many industry players still cannot access the banking sector. While regulators continue to sort out these issues on a federal level, cryptocurrencies provide a quick and easy way to accept cash-less payments in a way that’s traceable using unique identifiers, but anonymous enough for privacy purposes.
Interestingly, the concept appears to be catching on with a 35% move higher in the currency in recent weeks, taking its market capitalization above $100,000. The currency could face some competition from a number of others attempting to exploit the same market, including PotCoin, DopeCoin, and CannaCoin. All of these competitors aim to capitalize on an industry now valued in the billions of dollars.
Where these crytocurrencies end up remains to be seen, but as the industry matures without access to banking services, there certainly appears to be a unique opportunity.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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