Seattle Cannabis Dispensaries Accepting Bitcoin for Pot Sales
Two months ago, State of Washington giving marijuana dispensaries approval to accept bitcoin for cannabis sales. Now, thanks to a fintech startup called Posabit, a few cannabis merchants in Seattle are utilizing the decentralized currency in their business operations.
Many cryptocurrency enthusiasts would love to see the Bitcoin industry join together with the growing marijuana movement, which is happening in a few U.S. states. The State of Washington has allowed medical and recreational marijuana sales since 2014. Recently, Washington lawmakers and the state’s Liquor and Cannabis Board gave marijuana merchants and payment processors the approval to utilize digital currencies for dispensary sales.
Since then the startup Posabit, a credit-card-to-bitcoin payment processor, has begun working with four Seattle dispensaries which sell marijuana. The pot shops working with the Posabit system include the Queen Anne Cannabis Company, Herb’s House, Greener Today, and three Uncle Ike’s locations. Posabit claims to give cannabis merchants and other brick and mortar stores an easier way to accept credit cards and bitcoin at any point of sale location. In addition, the company says using their digital processor reduces cash transactions, which can be a danger for cannabis dispensary employees.
The Posabit experience allows users to purchase bitcoins with a credit card and use them to purchase goods from a cannabis location with a Posabit kiosk. In essence, the startup says that they remove the issues of using credit cards for pot sales by utilizing a legal cryptocurrency, because cannabis credit card sales are prohibited by law.
“We are selling bitcoin to individual customers, and allow our pot store customers to accept bitcoin as payment,” co-founder Ryan Hamlin tells Seattle Weekly. “Obviously federal laws prohibit using credit cards to purchase cannabis,” Hamlin adds. “That’s exactly what we’re not doing.”
There have been many Bitcoin proponents trying to push for these two industries to join hands, and it seems like the idea may continue to prosper. One of the biggest concerns for merchants in states where marijuana is legal is the large amounts of cash being stored onsite and transported offsite to banks. This type of practice opens the dispensary to dangers such as being robbed and other forms of cash losses. Posabit’s co-founder says that he saw “an industry that was in dire need of a credit solution.”
Hamlin adds, “I said, ‘software has got to be able to solve this problem’.”
Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.