Federal cannabis reform could reduce industry’s dependence on cryptocurrency

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If cannabis gains federal legal status, established banking channels would become accessible

When Senator Chuck Schumer, who now controls the US Senate, along with Senators Cory Booker and Ron Wyden announced at the beginning of February their intention to comprehensively reform federal cannabis legislation, it had could have knock-on effects for Bitcoin and the wider cryptocurrency industry. Most banking services are denied to people in the marijuana industry, even if they are working in an area where cannabis is legal and licensed. However, should federal legal acceptance be given to cannabis, it would mean that banks could work with companies in the industry, reducing the dependency on crypto.

The lawmakers’ declaration included, “The War on Drugs has been a war on people-particularly people of color.
Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country.”
The sticking point here is that banks are controlled by the federal government, and cannabis is still listed as a Schedule 1 substance, prohibited by law, just like heroin. So, federally insured banks cannot, for their own sakes, get involved in any way with the cannabis industry.

Private banking institutions are appearing now that purport to be able to deal with marijuana growers and distributors. Otherwise, the cannabis industry will continue to deal in cash, and the industry is growing to the point that some will end up with a lot of cash on hand, which is neither safe nor sane.

Crypto has been gaining in popularity in relation to the expected legalization of cannabis. It could be said that both are gaining in popularity and general social acceptance from lawmakers and regulators. However, there are some businesses out there that are using cryptocurrency for some time now successfully. So, the system must be working on a basic rudimentary level.
The scary part is what happens when one day it is suddenly not there anymore. The government could step in and shut it down or any number of things could just make it go away.