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In the U.S., Bitcoin Mom just found out that federal banks will close your account for investing in the cannabis industry. Could Bitcoin provide the solution?
Cannabis Is Basically Heroin at a Federal Level in the States
‘Bitcoin Mom’ Brooke runs a cannabis shop in Colorado called the Bud Depot. She just had her business bank account closed for investing in the cannabis industry. It seems that just about everyone can see the irony glaring off that statement–apart from the U.S. Federal banks, of course.
We just lost our business bank account because we invested in the cannabis industry. We're accredited investors with excellent credit ratings. Doesn't matter. Can't touch cannabis because it's a Schedule 1 drug (like heroin, meth & cocaine) according to US federal laws. Idiocracy
— ₿rooke (@bitcoinmom) February 26, 2019
Brooke’s tweet provoked a flurry of responses, almost entirely in support of the fact that the United States is one of few westernized countries still operating with draconian laws when it comes to marijuana.
One of her followers said:
I find it fascinating that the banks in the USA still operate as if it’s 1980.
Cannabis stocks have been blowing up ever since legalizing recreational cannabis north of the border was announced. And in the United States, recreational marijuana is now legal in 10 states.
However, at a federal level, it’s still classified illegal–and in the same bracket as heroin, meth, and cocaine. As Brooke has also shown, simply investing in the cannabis industry can have your bank account withdrawn.
Could Bitcoin Provide the Solution?
Another of her followers hit the nail on the head, stating ironically:
If only there was a permissionless peer to peer way to transfer value. Oh wait… there is.
If only there was a permissionless peer to peer way to transfer value. Oh wait.. there is and it’s instant! The banking industry will cancel every last customer and wonder why the failed.
— Full Node⚡️ (@Breaksteel) February 26, 2019
And another asked her whether she could just accept cryptocurrency for her products:
Hey @bitcoinmom. Why don't you just operate on a crypto only basis? Or do most of your clients still prefer to pay with credit cards / cash?
— Rasta Musk (@RastaMusk) February 26, 2019
“We accept bitcoin and debit cards,” she replied. “Most people don’t have bitcoin so we’re working on a solution for customers to acquire bitcoin to pay for merchandise. Then we offer a discount for paying with btc.”
However, most of her customers didn’t have bitcoin so she had to find some way of working on a solution to give more customers the option to pay with bitcoin and offer a discount paying with BTC.
Perhaps an ATM that can quickly convert cash into bitcoin would do the trick or maybe some software platform like Abra.
In all likelihood, however, Brooke will be returning to the banking system, since she also stated that she had found a ‘forward-thinking bank’ that had at least 120 customers on its waitlist wanting to open an account–on a state level that is.
Is Bitcoin a good fit for cannabis industry businesses who are shunned by banks? Share your thoughts below!