In recent times, blockchain technology has witnessed revolutionary growth and acceptance by the mainstream population. In similar lines, the global cannabis industry has also shown tremendous potential. While regulations regarding cannabis vary from country to country, quite a few countries have legalized cannabis for medical and recreational use. Recently, Canada became the second country in the world to officially legalize marijuana. As per the new law, Canadians will be allowed to carry marijuana in public, grow several plants, and purchase marijuana both online and in brick and mortar stores.
However, the cannabis industry still suffers from regulatory uncertainty. As a result of which most banks and financial service providers are skeptical about cannabis transactions, even if it is legalized in the country. This, in turn, brings in inefficient and expensive services and solutions such as hefty bank fees and cash transactions, which sadly add to the ‘shady’ image of the industry.
Jan Scheele, CEO of BitCanna remarked, “Keeping up with constantly changing cannabis laws is very difficult. So, banks, credit card companies, and online payment providers either refuse to get involved in cannabis, or they charge excessively high transaction fees. That puts companies who are selling cannabis products legally in a tricky situation — they have to figure out how to take their businesses cashless and sell online without breaking any laws. That’s where BitCanna will help.”
The legal cannabis sector seems to be in dire need of effective solutions for payments, tracking and traceability of crops along with reliable mechanisms. To address this problem, BitCanna is in the process of developing a decentralized payment network for the legal cannabis industry. The company is also working to issue its own cryptocurrency BitCanna Coin (BCNA). It will be distributing 420.000.000 coins.
BitCanna claims that with the help of its new platform, cannabis firms will be able to go cashless and process secure, legal, and cost-effective transactions. Users will be able to make instant transactions using the BCNA token with a minimal fee. At the same time, they will be able to keep a record of all customer identification data and manage the supply chains of the investors.
“It doesn’t matter if it’s a $10 or $100 transaction. Our customers will pay a small flat fee,” says Scheele. “We’re introducing a payment system that will make it cost-effective and safe for all cannabis companies to accept digital payments — whether they’re selling online or in-store,” he added.
To help achieve this, BitCanna has been coordinating with leaders in the European cannabis market, forming the BitCanna Alliance. The BitCanna Alliance works to identify the challenges of the global cannabis industry and thereby, offer the perfect solutions. The ultimate goal is to open up the restrained business attitude of the current cannabis market by implementing supply chain management and a trusted platform. Initially, BitCanna will run pilot projects at brick and mortar locations in Amsterdam and Barcelona.
Industry experts believe that the cannabis market seems to be gaining good pace now. According to the European investment bank Bryan, Garnier & Co., in the United States alone, the cannabis market is forecast to double from $22B in 2017 to $44B in 2020. And the global market is expected to reach $140B by 2027.