The cannabis and blockchain industry are going to work together. Digital tokens were adopted in many sectors, but there is still a lot to experience, especially when it comes to digital resources. In this case, California lawmakers go to a dispensary to buy cannabis using digital tokens. Dianne Martinez and Ben Bartlett became the first elected officials to purchase cannabis with digital tokens.
More companies are using blockchain technology for cannabis and it comes at a good time as California is set to pass Bill No. 953.
Bill No. 953 of the Assembly, sponsored by the Blockchain Advocacy Coalition, works to educate legislators and regulators about blockchain technology.
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This blockchain technology project would allow local California jurisdictions to accept the payment of cannabis taxes through stable coins. In other words, cannabis companies would be able to pay taxes using digital coins.
The Blockchain Advocacy Coalition facilitated the event, the two councillors went to Ohana’s cannabis store in Emeryville to find out how digital asset technology can improve transparency and reduce transaction fees through a live demonstration.
The dispensary received the Universal Dollar (UPUSD), an Ethereum-based token pegged to the U.S. dollar, created by the Universal Protocol Alliance, consisting of blockchain companies such as Cred, Uphold and Blockchain in Berkeley.
The demonstration showed and verified that “the process took a few seconds and resulted in substantially lower transaction fees for the dispensary,” according to which “Ohana accepted Bitcoin Cash (BCH) using Cred’s LBA token as a translation utility, with the proceeds from sales and municipal taxes settled in the USD universal.”
Bartlett said that by having a tax collection method that does not include cash, “AB 953 can reduce costs and risks to the security of cities and businesses,” adding that tax exemptions “using stable coin technology will help to bring this new sector to the forefront.”
The executive director of the Blockchain Advocacy Coalition was very satisfied with the “AB953” project. The new bill will provide an alternative method of collecting the tax remittance of cannabis.
The sector is 70% deposit-free and is a danger to public security that wastes city and state resources. AB 953 explains that the existing law imposes a state excise duty of 15% on the purchase of cannabis and cannabis products.
As of Jan. 1, 2020, this new bill would allow a city or county to implement a method by which such a tax could be paid in stable coin.
The world is faced with the explosion of two sectors that we never thought we would have to observe: cannabis and blockchain technology.
It should be considered that the two largest expanding sectors are starting to work together.
The blockchain project and the digital payment system is a phenomenal innovation, to say the least, which is why it is believed that the United States is much ahead of Westerners. With this project, California is opening a new frontier of payments in digital currency.
In fact, by 2020 the cannabis and blockchain technology industry will be working together. Let us hope that projects such as this can also be endorsed in Europe.
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(Featured image by Blake Wisz via Unsplash)
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First published in Economy24, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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