POSaBIT: a Crypto-Payments Stab at the Cannabis Cash Problem

POSaBIT: a Crypto-Payments Stab at the Cannabis Cash Problem

In the U.S., patchwork and clashing cannabis laws have caused banking frictions for domestic cannabis enterprises. These companies thus deal only in cash, a practical inconvenience and a threat vector. POSaBIT thinks they have a way forward after the debut deployment of their crypto-payments point-of-sale system in a Washington state dispensary. 

Also see: Bitmain Announces Closing of Israeli R&D Facility

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts

Cash Sidestep? Buy Crypto at POSaBIT Console, Spend in Dispensary

On December 11th, fintech startup POSaBIT announced the genesis deployment of their cryptocurrency point-of-sale system at Trove, a medicinal and recreational cannabis dispensary in Bellingham, Washington.

POSaBIT, which specializes in retail transaction portals, had serviced Trove with a mainstream, non-cryptocurrency POS platform since last summer. The latest announcement marks Trove’s embrace of POSaBIT’s new crypto-payments POS suite.

POSaBIT
Due the current legal thicket and ensuing U.S. banking atmosphere, cash causes pain for U.S. cannabis dispensaries. Will crypto payments prove viable or gimmicky for the industry?

To date, the inability of cannabis companies to achieve normal banking services in the U.S. has forced these enterprises to shirk digital dollars, i.e. card payments, in favor of cash.

That cash-heavy dynamic has created taxation and security nightmares for these businesses, and it’s these pain points POSaBIT has eyed with its newly deployed system.

“[It’s] a unique solution that allows cannabis retailers to accept credit [or] debit cards by enabling customers to acquire cryptocurrency through a dedicated console and spend it where the POSaBIT system is installed,” the firm said.

“As a result, previously cash-only businesses can offer a secure and compliant means of payments along with a sophisticated and high-touch customer experience provided by the same POS system utilized by many Fortune 500 companies.”

On the news, Trove CEO Yin Lai said the startup’s service and POS possibilities have been “incomparable to others in market,” later adding accordingly that “debit and credit payment services continue to provide a competitive edge in this crowded space.”

In Other Herbal News: Symboli Says Their STO Will Fuel Cannabis Dispensary Buy-Ups. Can They Deliver?

Still a fledgling financial innovation, security token offerings are starting to trickle out with more frequency and more variety.

Symboli’s newly announced security token, which is said to be underpinned by the Ethereum blockchain, will reportedly fuel a cannabis and crypto meld, as the startup’s aiming the sale toward buying up five cannabis dispensaries in Los Angeles.

If actualized, Symboli has said they would use the raised funds to enact their proprietary Cannabis Dividend, a dividend payout that would be based on the revenues of the five purchased dispensaries.

The project looks like a small one, so it may or may not go anywhere. But whether it lives or dies, it does point further to the general possibilities of tokenized securities.

Green on the Brain

Zooming out, some chatter that gained steam earlier this year was conjecture over whether some of the cryptoverse’s speculators had acutely left the cryptoeconomy in pursuit of then-surging cannabis stocks.

Surely some did. The question is how many, i.e. was it a non-trivial amount? And, in extension, what would that mean and why would it matter?

Speculators are going to speculate, many will say.

But perhaps there were some investors that were the tip of the spear, the advance guard chasing yield. They chased high-risk crypto when it was hot and have hypothetically withdrawn since the last crypteconomy peak in January 2018. In the following months, they chased stocks, including pot stocks, as global markets reached acute highs that have more recently been largely erased as investors seem to once again be withdrawing.

Indeed, the U.S. Federal Reserve recently warned of a de-risking environment that could, in part, lead to market shocks and the plunging of historically elevated assets in American markets.

To that end, and with a mind to yield, perhaps the crypteconomy drawdown over the course of 2018 was, indeed, the tip of the spear — the first sign that such de-risking was nigh. A global recession could be brewing accordingly, though the verdict’s still out.

Take Another Hit: Harborside Dispensary Founder Talked Crypto at Miami Cannabis Expo

At the 2018 U.S. Cannabis Conference and Expo in Miami, Andrew DeAngelo, the founder of America’s largest cannabis dispensary Harborside, discussed his views both on cryptocurrency and his native industry’s banking frictions.

At the time, DeAngelo said there was a great deal of interest in bitcoin in the cannabis industry and that many therein were beginning to appreciate crypto’s potential as a way to transcend their cash-heavy woes.

On the flip side, the Harborside founder said the problem was the average business owner found the cryptoeconomy too complex for onboarding.

“We don’t do bitcoin not because I don’t want to do bitcoin, I just don’t understand it!” DeAngelo said.

It’s that reality that makes POSaBIT’s proxy cash crypto-payments POS system an interesting one. As such, professionals like Trove CEO Yin Lai don’t need familiarity with anything more than a mainstream sales portal to let cryptocurrencies solve one of their business’s pain points.

“The POSaBIT team worked with us every step of the way to ensure the transition of our data and inventory was so simple,” Lai said.

What’s your take? Is POSaBIT’s crypto-payments POS system an interesting one, or do you think it’s not a long-term solution for the cannabis industry? Let us know in the comments section below. 


Images via Pixabay

Related News