The new Venezuelan cryptocurrency "Petro" logo is seen at a facility of the Youth and Sports Ministry in Caracas, Venezuela February 23, 2018.
The new Venezuelan cryptocurrency "Petro" logo is seen at a facility of the Youth and Sports Ministry in Caracas, Venezuela February 23, 2018. Reuters/Marco Bello

The cannabis industry, which is poised to record US$75 billion (AU$98.9 billion) worth of sales by 2030, is currently facing a cash problem as companies in the said sector are experiencing a tough time in giving payments to most banks.

The plant is still illegal under federal law. As a result, banks hesitate to accept cash from these businesses as these depositories have to comply with federal rules, Business Insider reported in 2016. Although it is still possible to accept cash without breaching US regulations, most banks prefer not taking that risk.

According to Bloomberg in the same year, only 220 of 7,600 US banks and credit unions take in money from cannabis companies. This problem affects cannabis establishments and consumers, who have difficulties in respectively paying their taxes and for their purchases.

But the billion-dollar industry may have found a solution through another billion-dollar market: cryptocurrency.

While cryptocurrencies are slowly being recognised as a genuine currency across the globe, cannabis players are hopeful that these assets will resolve their problem by allowing them to pay to banks through digital coins, a transaction which is happening in several businesses across the globe.

As such, many cannabis players have already started treading that path. One of them is PotNetwork Holding, Inc. (OTCMKTS:POTN).

A leader in the cannabidiol revolution, the Florida-based company has recently ventured into the cryptocurrency space. Based on recent news, it seems to be working toward creating an alternative coin for its cannabis businesses.

PotNetwork — through its cryptocurrency subsidiary, Blockchain Crypto Technology Corporation — has purchased a cryptocurrency mining facility equipped with 115 powerful rigs. Without delving into specifics, the firm said that this large capacity will help the above subsidiary manage certain transactions in the future with its alternative digital currency.

This new development is, indeed, exciting for the company, and investors are on a wait-and-see approach on how it will turn out for PotNetwork.

Another cryptocurrency that capitalised on cannabis is PotCoin. Launched in January 2014, Potcoin is an open source infrastructure platform, which means alterations to the code are possible. Potcoin is the first peer-to-peer cryptocurrency which provides a payment solution. This consummates transactions without laying the identity of cannabis buyers and of sellers out in the open and jeopardising them to go to jail.

Aside from its banking solution, the PotCoin platform also offers cannabis users access to a wide network of other cannabis lovers which can help grow the community.

Benefits of the said alternative coin will trickle down to customers of the cannabis firms connected to the SAAS platform. Shoppers can now verify the information on the products they order. Not only will this ensure that customers get their desired products, but this will also encourage them to return and even attract more patrons along the way.

With the progress seen in these companies, it is expected that more cannabis players will notice the advantage of adding cryptocurrency in their business portfolios and will likely follow suit. Meanwhile, the starters of this trend like PotNetwork and düber Technologies are likely to focus on improving their cannabis and crypto businesses without worrying about competition.

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