Cryptocurrencies such as Bitcoin are a billion dollar industry and it was only a matter of time before the cannabis business got into the action. It shouldn’t surprise you that there are already a few cannabis-related cryptocurrencies on the market such as Cannabiscoin, Potcoin, and Weedcoin.
SinglePoint, a Nevada-based holding company, recently purchased Weedcoin from First Bitcoin Capital Inc., and it intends to give customers, dispensaries, and growers an alternate method of payment.
In the United States, credit card companies and banks won’t work with the cannabis industry as it’s still illegal under federal law, and this has forced many dispensaries (which are operating legally in the state) to go cash-only, making them prime targets for armed robberies and break-ins across the country.
The Weedcoin Strategy
SinglePoint’s strategy revolves around aggressively signing up customers to Weedcoin through incentives such as loyalty programs and special offers, and then leveraging that customer base to encourage dispensaries to adopt Weedcoin. Not to mention, SinglePoint would have a treasure trove of data in terms of consumer buying habits that it could sell to marketers and dispensaries.
SinglePoint hopes Weedcoin could eventually grow to be the cannabis version of Starbucks’ wildly popular mobile payment app, but only time will tell. The cannabis industry is highly competitive, and many have failed before.
Will the Feds Catch Up?
Until the federal laws catch up to the many states that have legalized cannabis in one way or another, cryptocurrencies such as Weedcoin will continue to be an attractive method of payment- and just like weeds, as soon as one goes, another one is bound to pop up.