The legal US cannabis industry is growing strong where local authorities have stepped out of its way. However, in combination with banks and credit card companies refusing to provide services to many businesses, restrictions have created a perfect opportunity for alternative systems to prove themselves. Themed altcoins, specialized ICO projects, and other types of crypto ventures, have tried to fill this niche. The latest one is a Bitcoin ATM maker with a payment solution for dispensaries.
Virtual Crypto Cannabis Solution
Virtual Crypto Technologies Ltd (OTCQB: VRCP), an Israel-based developer of Bitcoin ATMs and cryptocurrency point-of-sales systems, has announced a proprietary crypto payment solution specifically developed for cannabis dispensaries. Projected to be released in Q4, the solution will enable authorized US dispensary operators to sell their products for cryptocurrencies with minimal hassle. The developers explain that for a client to purchase cannabis via the solution, they need to simply scan a QR code that appears on a point-of-sale interface and the store receives a confirmation within seconds.
“Our cannabis payment solution is building upon the foundation we established with our first-generation point-of-sale system. Virtual Crypto has been validated in the market and is a proven technology,” stated CEO Alon Dayan. “Not only does our solution make it easier to accept payments, it also provides a record of transactions, which ensures alignment with government oversight, eliminating fraud and abuse.”
Reducing Fiat Cash Usage
The developers say that the crypto cannabis payment solution can facilitate the reduction of fiat cash payments at dispensaries and the amount of it moving through the industry as a whole. They admit that the adoption of cryptocurrency won’t eliminate cash completely from the field but expect that it will help the industry shift to a more standard cash usage rate of about 30%. They also say it can result in increased tax revenue, thus encouraging more locations to legalize the industry.
“Today with cash as the payment method of choice at dispensaries, they have quickly become a target for thieves. With tens of thousands of dollars in transactions per day, employees are faced with an unsafe work environment. Additionally, cash makes it difficult to account for the appropriate payments of taxes to the government,” explained Dayan. “Our goal is to be an alternative payment option, not to eliminate cash. We believe our technology can ultimately reduce the amount of cash moving through the cannabis ecosystem, which will help foster a safer work environment and ensure industry participants pay their taxes using an alternate payment method.”