What Happens When the Banks Become Involved in the Cannabis Industry?
It’s going to happen…probably this year. Who knows for sure, but the plans for getting banks involved in the Cannabis Industry is right around the corner. What would need to happen for this to occur are several events.
For starters, on the 13th of February of 2019, there will be a hearing to examine the difficulties that cannabis businesses face in entering into legitimate banking systems. The hearing will take place before a subcommittee of the House of Financial Service Committee.
Then, there are several other hearings that will occur over the course of 2019. With a Democratic majority, and several bi-partisan bills on the table…2019 could show a monumental shift in US policy during the course of the year.
That is one story arch on Season 45 of “US Government – Domestic Policy Unit.”
But how these changes will affect the cannabis industry is going to be interesting. For starters, you will see a few well-positioned stocks on the cannabis market sky rocket. Don’t quote me on this, but it’s happened every single time that a “positive break” occurs in the cannabis industry. Banking access would be a monumental victory for marijuana businesses large and small.
As a result, there should definitely be an uptick in certain stocks.
Additionally, with cannabis businesses able to move away from a cash based system, it should also increase consumer demand. This would allow people to use their credit cards to purchase their weed. It will also make it easier to weed out bad players within the market.
The Problems with Cash
A Cash based system provides a plethora of problems. Firstly, having wads of cash in your weed store is an open invitation to desperate criminal types looking for a ‘quick score’. There have been several instances of people breaking into dispensaries and grow houses to make off with cash and weed. In this case, public safety is compromised.
Secondly, it also becomes easier to launder money for cartels. We’ve all seen Ozark and don’t think for a second that some savvy cartel member didn’t think about hacking a cash-based system involving legal weed. Having the ability to move away from a cash-based approach, will reduce the ability to launder money through these businesses.
Of course, dispensaries are closely watched, but cartel operations are hyper sophisticated and finding loopholes in the system to exploit is their specialty.
Finally, administration issues become a nightmare for legitimate businesses. Sending your employees off with wads of cash simply increases risks. The idea of legal cannabis was to make the environment safer, and cash-only simply isn’t a viable approach if this is what you want to achieve.
How will the industry change?
I can only imagine that over the course of the next two years we will see an insane amount of growth within the global marketplace. The United States is about (in relative terms) to reschedule cannabis and incorporate the business side of weed.
When this happens, there will be a domino effect all over the world with countries jumping on the bandwagon to participate. This will begin the age of international cannabis commerce. With multiple players in the international market competing for consumers, we should begin to see innovative new ways to consume the product.
This both for medical and recreational applications. One of the biggest “Golden Gooses” of the industry is perfecting a cannabis drink. Once you can consistently drink a single can of “Weed Juice” and achieve the same level of high per dose…it’s game over.
With Federal policies slowly catching up with the demand of the people, there are several big companies getting ready to hit the market.
The banking issue has been a thorn in the industry’s side for a long time. Removing this roadblock will only speed up the inevitable snowball that will reshape the world entirely.
Reshape the world?
The thing about cannabis is that it’s not like any other drug on the market. People will have a de-stigmatized option to consume a recreational drug with ease. All around the world. Eventually it will become a normal activity just like drinking a beer.
The sheer versatility of hemp and weed will give birth to thousands of new products and foods, medicines and even help to make this world more energy efficient.
We’re approaching a global paradigm shift that will occur over the next few years. As we pour our science and agriculture in this “new” [old] crop at our disposal, we will innovate the industry far beyond what any one person can imagine.
Hemp fields will be scattered all over the world, premium cannabis grown in large indoor growing facilities. Entertainment will change. Human interaction will change. The world will be completely different if weed was legal.
Now don’t get me wrong, we aren’t going to be singing campfire tunes and banging on djembes, but you can’t deny that cannabis is a happy drug. And happiness is contagious.
Merchant accounts for cannabis companies are opening up, read about Vector Payments here and SIGN UP.