Has potential as cure for banking concerns among cannabis companies

Photo Credit : GECKO Governance,

The cannabis market in the U.S. and worldwide continues to grow, but that doesn't mean everyone is open to the idea of legal marijuana. The banking industry is one example, as the Federal Deposit Insurance Corp. (FDIC) has generally been unsupportive of backing cannabis-related investments.

Since marijuana hasn't been legalized at the federal level, most banks are hesitant to have any part of the $6.7 billion marijuana industry. While many industry experts expect this stance to change amid growing support for a bankable marijuana industry, 70 percent of cannabis companies currently operate without access to a corporate bank account. Industry innovators are gearing up to fill this payments gap, however.

SinglePoint Inc. recently announced an alternative payment solution in partnership with First BitCoin Capital Corp. to develop a bitcoin payment solution for the marijuana industry.

Other major players on the rising bitcoin market include price-tracking Bitcoin Investment Trust and a growing number of retailers, including Overstock.com Inc. and mobile gaming company Zynga Inc., that are currently accepting digital currencies.

A lack of bank support hasn't deterred SinglePoint from aggressively expanding its market reach to the 29 states that have legalized medical marijuana. Demonstrative of its insight into the opportunities afforded by mounting acceptance and legalization of marijuana, SinglePoint recently announced its partnership with First Bitcoin Capital, a leading provider of bitcoin technology, to create a viable payments solution for unbanked cannabis businesses.

Using 'blockchain technology', the solution will target high-risk payment verticals and enable customers to use their credit or debit cards at a medical/recreational cannabis dispensary - a capability that will benefit customers as well as the swelling number of cannabis suppliers and dispensaries across the nation.