In the previous part of this series, we touched on the illegal elements surrounding cryptocurrency and the marijuana industry. Marijuana is considered an illicit drug with a potential for abuse. As a result, it’s classified as a Schedule 1 drug in the US under federal law.
Additionally, drug cartels have controlled the marijuana supply in North America, presenting an ongoing criminal problem for authorities.
In the chart above, we see the trend of crimes related to cannabis and other drugs in Canada between 1977 and 2013. In 2013, cannabis possession accounted for 54% of the drug-related crimes in Canada.
Because cannabis is an illegal drug under the US federal law, many related businesses conduct business in cash. These businesses may not be able to access the financial services ecosystem, which includes bank accounts, merchant services process online and card swipe orders, and access to capital markets.
The cannabis industry has a cryptocurrency called PotCoin. According to PotCoin’s website, this virtual currency was created to provide an ecosystem to serve some of the needs of a cannabis-related business.