The marijuana industry is often subject to quite some limitations in the finance sector; scared of the money laundering risk obtained from a cash intensive space. Banks do not want to open accounts for these firms. This is where blockchain finds space. Tokken, one of the leading startups offers online banking services to firms in the marijuana industry. It is the first company looking to extend banking services to cash-intensive and unbankable businesses. Tokken is basically a mobile platform established with the aim to address the regulatory discontinuities. The firm offers secure payment methods to eliminate the risk of money laundering.
Being a blockchain agnostic startup, Tokken aims at providing transparent solutions in the cannabis industry. Realizing the need for a secure payment system, the founders have come up with a platform that leverages technological innovation in cryptography to offer payment services for a growing segment of underbanked and unbanked.
Similar to the other startups, Tokken also allows consumers to electronically pay marijuana purchases. The firm is presently working with dispensaries in Colorado. Blockchain is really interesting in the Cannabis industry. Tokken offers canna businesses a bank account and blockchain-based transaction history which is linked to brick-and-mortar institutes and seed to sale systems, with Tokken as the middleman.
Due to the presence of cash being associated with marijuana sales not being qualified for distribution of any kind via financial institutions or credit cards, blockchain counts to be a true life saver for both short-term and long-term. Since the technology does not involve a central authority, there is no way for the State or Federal government to intervene with dispensaries processing transactions through blockchain.
Asking people to make use of bitcoin purchases will definitely be a challenge. However, it will definitely act as an ultimate solution to move a huge amount of cash securely. Considering the fact that there lies a potential for the Federal government to get involved somehow with attempted regulation, the upsides to the implementation of technology seems a good idea that just cannot be avoided.