Lack of banking possibilities is stifling marijuana industry growth
Since the federal government hasn’t yet moved forward to legalize cannabis in the US, the industry is suffering. Not only is it unable to expand and provide medical relief to millions, but it is also suffering because banks, in many cases, won’t deal with marijuana companies. This means no loans, no financial support and no safe storage of profits. This could change, though, and banks could be ready to start embracing the marijuana industry by next January.
Currently, marijuana is almost strictly a cash business. This makes it difficult for the industry to expand and forces dispensaries and retailers to find different ways to cover financial transactions. Some have turned to cryptocurrencies in order to circumvent federal restrictions, but this is only a stopgap measure that doesn’t solve all of the issues.
According to Bruce Linton, the CEO for Canopy Growth, there exists the real possibility that banks will start getting involved with the marijuana industry by next January, or as early as this Christmas. Canada-based Canopy Growth is one of the oldest companies in the industry and the first to be traded publicly.
While not officially coming forward to support marijuana, banks have apparently been busy behind the scenes. Linton points out that he has been approached by Bank of America and other financial institutions that have been trying to recruit him and Canopy Growth as a customer.
Canada is going to make marijuana legal across the country this week. On its heels, there are reports that President Trump will make good on a campaign promise to possibly introduce legalization of medical marijuana. Given the evidence, marijuana companies might receive the best Christmas present ever.