Exploring Cryptocurrency in the Marijuana Industry with stats
As of April 2023, medical marijuana is legal in 38 states and Washington, D.C., while 24 states and D.C. have also legalized its recreational use as of November 2023. Despite these advancements, marijuana remains illegal at the federal level, creating significant challenges for businesses operating within the industry. The inability to access traditional banking services has driven many marijuana businesses to explore cryptocurrency as a solution for conducting financial transactions.
Learn more about the top marijuana cryptocurrencies here: Investopedia: Top Marijuana Cryptocurrencies.
Key Takeaways
- The U.S. federal government has not decriminalized marijuana for traditional banking transactions.
- Marijuana businesses and consumers are turning to marijuana-specific cryptocurrencies to facilitate transactions.
- Notable marijuana-focused cryptocurrencies include Tokes (TKS), PotCoin (POT), CannabisCoin (CANN), DopeCoin (DOPE), and HempCoin (THC).
The Rise of Cryptocurrency for Marijuana Transactions
Federal Legislation Limits Banking Options
- Federal prohibition prevents marijuana businesses from using traditional banks.
- Cryptocurrencies have emerged as an alternative, addressing the unique needs of the marijuana industry.
Blockchain Solutions for Regulation and Transparency
- IBM proposed using blockchain technology for regulatory control, offering seed-to-sale tracking solutions.
- Blockchain could help eliminate black market sales by controlling sourcing, pricing, and distribution.
Top Marijuana-Specific Cryptocurrencies
1. Tokes (TKS)
- Launched: 2016
- Features: Point-of-sale crypto-payment solutions, blockchain-based "track and trace" for supply chain visibility.
- Circulating Supply (June 2024): ~200 million.
- Applications: Inventory, product management, and accounting integrated into merchant software.
2. PotCoin (POT)
- Launched: 2014
- Highlights: Installed the first marijuana-focused ATM in Colorado.
- Historical Moment: Dennis Rodman’s promotional campaign doubled its value in one day.
- Circulating Supply (June 2024): 115 million (out of 420 million cap).
- Proof-of-Stake Transition: Encourages mining based on holdings.
3. CannabisCoin (CANN)
- Launched: 2014
- Purpose: Peer-to-peer currency facilitating easy transactions for medical marijuana.
- Unique Feature: Offers 1:1 exchanges (1 CannabisCoin = 1 gram of medication).
- Circulating Supply (June 2024): Over 77 million.
4. DopeCoin (DOPE)
- Launched: 2014 by Adam Howell.
- Objective: Provide a secure, modern financial system for marijuana enthusiasts.
- Circulating Supply (June 2024): ~117 million.
- Proof-of-Stake Rewards: Offers 5% annual interest to investors.
5. HempCoin (THC)
- Launched: 2014
- Use Case: Focused on the farming industry and medical/recreational dispensaries.
- Circulating Supply (June 2024): 267 million.
Purchasing Marijuana Cryptocurrencies
Marijuana-focused cryptocurrencies can be acquired through direct purchase from crypto companies or via platforms such as Coinbase.
The Legislative Landscape
Federal Inaction
- No comprehensive federal law has been passed to decriminalize marijuana.
- Notable proposals include the Marijuana Justice Act and the Marijuana Opportunity Reinvestment and Expungement Act.
Future Trends: Cannabis NFTs
- NFTs (Non-Fungible Tokens): Provide investment opportunities tied to the global cannabis market, further integrating digital assets into the marijuana industry.
The Numbers Behind the Industry
- The U.S. legal marijuana market is projected to reach $41.5 billion by 2025 (Statista).
- 70% of cannabis businesses operate without banking services (Forbes).
- The global cryptocurrency market exceeds $1 trillion as of 2024 (CoinMarketCap).
The Bottom Line
Marijuana-focused cryptocurrencies like Tokes, PotCoin, CannabisCoin, DopeCoin, and HempCoin offer innovative solutions for businesses and consumers. These digital currencies circumvent the challenges posed by federal prohibition and the lack of traditional banking access. As the marijuana industry evolves, cryptocurrencies may play a pivotal role in its financial ecosystem.
Discover more about these cryptocurrencies here: Top Marijuana Cryptocurrencies.
