Digital currency has come a long way over the last few years. Some hail the creation of digital currencies like Bitcoin as the greatest invention since the internet, perhaps rivaling the importance of the internet itself. But did you know that the legal cannabis industry has its own digital currency? PotCoin, born in Montreal, is digital currency accepted at dispensaries across North America and may just be the cannabis industry’s solution for banking.
Bitcoin is the current major player in this industry and the first successful digital currency. It is powered by a technology called the blockchain, which fundamentally is a distributed ledger. It is a currency that has no one in charge, cannot be controlled or manipulated, and is unhackable. Blockchain technologies are a dramatic shift from traditional currencies by giving the user full control over their own money without needing a third party like a bank. The market cap for these digital or cryptocurrencies is fast approaching 1 trillion dollars which makes it ripe for adoption by the medical marijuana industry.
PotCoin was created by Joel Yaffe, a Montreal based entrepreneur. Joel started PotCoin Systems, a software development firm, with the purpose of changing how people buy and sell marijuana. By running on its own blockchain, PotCoin removes the need for third-party intermediaries and leaves complete control to the user. Users can access their PotCoins directly on the blockchain by using what is called a wallet. A PotCoin wallet is a portal to the blockchain which allows you to send and receive currency right from your phone.
In places like the US, the majority of banks will not deal with cannabis companies as they are federally illegal. This could open banks up to federal money laundering charges if they decided to handle pot money. Digital currencies like PotCoin completely bypass traditional banking systems and allow cash-only cannabis businesses a chance to store their assets without the worry of physical security. Coins are secured on the blockchain by a private key, a long and complex password controlled by the user. Blockchain encryption is some of the strongest on the planet, making storage and use of PotCoin safer than using cash.
PotCoin has been around for a while now, however, there has been an explosion of money into the cryptocurrency space, from which PotCoin has definitely benefited. The price of PotCoin used to be around a tenth of a penny US. Today, due to the explosion of new investors and pot enthusiasts gravitating toward PotCoin, the price now holds at around 30 cents a piece. Anyone who invested in PotCoin in the early days is probably worth a pretty penny today.
PotCoin, just like the cannabis industry itself, is in its infancy. Besides being a convenient way for consumers to buy cannabis, PotCoin is proving to be a long-term worthwhile investment. As the industry continues to grow, so will PotCoin. PotCoin Systems has already begun to expand development of PotCoin ATMs into California, and Colorado, two of the biggest markets in the US. Digital currencies are a significant invention and will undoubtedly change the way we look at money and finances.
Keep an eye out for the PotCoin logo at a dispensary near you.
Davie is a long time cannabis professional who has worked not only as a cultivator but in all aspects of retail cannabis. From budtender, to wholesale and retail management, and from harvester to advanced hydroponic specialist, Davie has been around the block more than once. Now residing in beautiful British Columbia, Davie now works with acres of greenhouses, producing some of the best buds in the country.