Honey is the founder of BlogMusketeer blog. He also helps global brands, and ambitious startups.
Other than the Internet of Things, the CBD and cryptocurrency sectors are the fastest growing industries in the world today. In the United States, the cannabis market value is projected to hit the $50 billion mark by 2026. The same projection is expected for the cryptocurrency industry. Now, it appears like the two sectors are converging.
Just recently, notable Greek billionaire and Coca-Cola heir, Alkiviades David, announced the launching of Cannabis Swissx Bank, a platform meant to facilitate global CBD transactions. The platform will also run a cryptocurrency known as SWX Coin. Mr. Alkiviades sees the SWX initiative as a safer and more transparent way for CBD customers and investors to transact.
Overall, Mr. Alkiviades is just one of the so many CBD investors who are giving cryptocurrency a try. But, why are CBD and cryptocurrency converging? What’s pushing the convergence? Here are possible explanations:
If you have been keeping an eye on the cryptocurrency market lately, you must have noticed the sharp rise of Bitcoin. In 2017, the Bitcoin market registered a record hit when a single coin first reached the $4,000 mark. Unsurprisingly, it has remained above this mark ever since. One reason why Bitcoin is considered a great exchange solution in the CBD sector is because it’s a safer non-cash solution.
Entrepreneurial efforts by brands like SinglePoint, Bitcoin Services, and Global Payout have a role to play in as far as the CBD and cryptocurrency convergence is concerned. SinglePoint, for example, aims at using Bitcoin to address issues that have rocked the US cannabis sector over the years. They have a Bitcoin exchange program called OTC: SING that allows both debit card and credit card transactions.
Global Payout, on the other hand, boasts of MoneyTrac, a payment platform for CBD-related products. Their aim is to offer legally-compliant CBD services to their customers. As for Bitcoin Services, they have registered high stock prices because of their escrow services and Bitcoin software that CBD investors and customers around the world are finding very useful.
Considering that not all CBD customers and dispensaries are open to the idea of cash transactions, cryptocurrencies are the closest thing they have to a non-cash payment solution. CBD customers are now allowed to obtain cryptocurrencies at any Point of Sale (or POS) that they can use to make instant purchases. Interestingly, they can sign up at the time of assessing the POS or do it in advance.
Though cannabis is legalized in some places, it’s generally regarded as a drug by the Controlled Substance Act. So, CBD transactions are principally unbankable. Also, the flexibility of both debit and credit transactions means that customers and CBD dispensaries can work independently of commercial banks. Customers can use payment cards to make CBD product purchases conveniently at different CBD stores.
Today, we are seeing cannabis-specific cryptocurrencies being established as a result of collaborations between CBD investors and Cryptocurrency Company. One notable example is $Weed, a product of Single Point. CBD customers and retailers are not only allowed to use Bitcoin for CBD transactions but also $Weed. Following the launching of $Weed, the cannabis liquid market has capped almost $60 million. This is impressive from an investor’s standing.
The cannabis sector is generally considered a high-risk market. Thus, CBD investors are always looking for more secure payment options for their customers. So far, it seems like cryptocurrency is the solution they have been looking for. Instead of just allowing their customers to pay using Bitcoin and other cryptocurrencies, CBD investors are going for partnerships with cryptocurrency companies. So, we are seeing more of such convergences now than ever before.
Since the emergence of cryptocurrency companies like PotCoin, CannaCoin, and HempCoin, CBD scandals have reduced significantly. For those who pay or receive payments using cryptocurrency, the CBD sector is no longer a high-risk market. Generally, the major issue that the CBD sector has been dealing with is payment transparency. This problem, however, seems to be fading away due to CBD-cryptocurrency convergence.
CBD companies are enticing their customers to sign up for cryptocurrency wallets that they can use for their transactions. As a result, the relationship between the two parties is more likely to end up in a convergence. The interesting thing is that these companies are not just interested in convincing their customers to sign up for cryptocurrency wallets but also to do it ahead of time. This is meant to ensure that they make their online orders without delays.
But since CBD customers are generally hard to please with new solutions, the convergence of these two sets of industries is facilitated by enticements like loyalty programs and special deals that the customers can’t resist. Such enticements are so common in Industrial Hemp Farms. They are a notable influencer of purchasing decisions for CBD products around the globe.
The federal government is known to put restrictions on the CBD financial dealings. As a result, CBD investors are opting for cryptocurrency as a vehicle to bypass the restrictions. Luckily, this move appears to work and is considered a top driving force for most CBD cryptocurrency convergences. For example, the US federal government has put restrictions on CBD banking.
However, dispensaries and consumers can easily escape them if they opt for cryptocurrency over cash. Furthermore, the federal government is known to put restrictions on how cannabis-related payments are accepted and banked. Such restrictions, luckily, do not exist when it comes to cryptocurrency-facilitated CBD payments. So, this is good news for CBD investors.
Though the supply chain for CBD products is a long one, the incorporation of cryptocurrency means that CBD investors can have a peculiar picture of the sector end-to-end route. In the end, this means that product quality is checked and assured at all times.
There’s no doubt that CBD and cryptocurrency convergence has been being healthy for CBD users. The collaboration seems to be more lucrative than the two sectors operating separately. Simply put, the phrase ‘two is better than one’ is truly manifesting here and we can only wait to see more convergences in the future.