Opportunities and Challenges in Legalizing Recreational Cannabis
The marijuana industry is strapping in for a roller-coaster 2018 when challenges and opportunities are unfolding faster than ever, and in more places than ever.
Here’s a look at few of the biggest challenges and opportunities that will demand the attention of marijuana entrepreneurs in 2018 and the months ahead.
The Cannabis Financial Challenge
One of the preeminent challenges that the medical cannabis is facing is finding willing financial institutions to handle the excess cash flow that the industry generates. As cannabis is still illegal under the federal law, the US federal banking institutions are wary to be a part of this industry. Even the few banks that are helping the industry are having second thoughts regarding their support. For example, a bank in Illinois informed its cannabis account holders that they would be closing their accounts. The spokesperson of the bank said that this step was taken to protect their current customers and that they had no intention to jeopardize their relationships with them by being involved in businesses that were operating under the legal gray zone.
Alternative Options for the Industry
Global Payout Inc. along with Money Trac Technology (MTRAC) has offered alternative fintech banking solutions to such high-risk industries present in the USA, Mexico, and Canada. They have offered customized payment solutions which allow cannabis businesses to process and manage payments electronically across the globe. MTRAC has also launched its new “Key to Cashless” payment solution backed by the GreenBox blockchain technology to further streamline its payment processes.
The CEO of MTRAC, Vanessa Luna, said that the company is thrilled to launch this payment platform. They aim to market and persuade governments and municipalities to adopt the new technology to both, regulate the cannabis sales as well as monitor it for tax purposes. It is certainly an out-of-the-box payment system that offers electronic transactions, integrated point-of-sale, inventory tracking, and one-click payroll. With such effective services in place, it is evidently the ideal payment solution that the cannabis industry has long awaited for.
The impediment here is that paying for cannabis prescription is still a challenge because a majority of the time, cash-in-hand is the only payment medium available. The company, however, is taking efforts to get variously licensed dispensaries to incorporate their payment system and soon expects the municipality to accept their request.
Cannabis Opportunities- An Ever-growing Marketplace
According to the Grand View Research, the worldwide medical cannabis market is expected to stand at a value of USD 55.8 Billion by the year 2025. Ancillary businesses that support the industry are also developing at a fast pace. From growing and producing to supplying, the job opportunities this industry has to offer is endless. Related accessories like rolling paper, vaporizers, etc., is also expected to generate more job prospects. Infused products like edible cannabis along with extracts and oils are an innovative approach to presenting cannabis products in the mainstream market
Even though it is illegal at a federal level, medical and recreational cannabis has become an industry that cannot be ignored and possesses the same requirements as a mainstream business. From point-of-sale software, payroll providers to ancillary companies, accountants, law firms, etc., are all part of a huge revolution.
Challenges in the medical cannabis industry will be here for a while and rules will keep changing from state to state. However, with such dynamic opportunities and strong support from the market and other industries, the cannabis industry is fast changing the face of its global market landscape.