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California cannabis industry integrates crypto payments to facilitate settlements and government tax collection

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California cannabis industry integrates crypto payments to facilitate settlements and government tax collection

California City Councilmember Ben Bartlett has become the first elected official to use cryptocurrency to purchase cannabis, as payment applications for cryptocurrencies make headway in the cannabis industry.

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Encrypted Payments Facilitate the Cannabis Industry

At the encrypted payment solution showcase held by Ohana Cannabis, a cannabis business in California, on September 10th, advantages of settlement using stablecoins and blockchain technology were demonstrated to City Councilmember Ben Bartlett.

Members of the Blockchain Advocacy Coalition (BAC) and the cryptocurrency financial platform Cred showcased how encrypted cryptocurrency payments operate to the councilmember on-site.

During the demonstration, Cred co-founder Dan Schatt mentioned that cryptocurrency has advantages over traditional payment services. He stated:

Cryptocurrency not only significantly reduces costs for consumers and merchants but also provides efficient tax collection for city and state governments, increasing transparency. We are excited to offer solutions for customers, merchants, and politicians, helping to meet the future demand of up to 100 million cryptocurrency users.

According to a report, the business accepts Bitcoin Cash (BCH) and settles in Universal Dollar using the LBA token from the cryptocurrency financial platform Cred.

The stablecoin Universal Dollar is an ERC20 token backed by the US dollar and created by the Universal Protocol Alliance, as reported by Universal Protocol Alliance.

The alliance, consisting of several blockchain startups, including Berkeley Blockchain, trading platform Uphold, and cryptocurrency financial platform Cred, collaborated to create this stablecoin.

With the help of the team members, Councilmember Bartlett's first experience with encrypted payments was completed in just a few seconds, and he expressed on Twitter that the process was very interesting.

It is understood that the bill AB 953 allows cannabis companies to pay taxes using cryptocurrency, laying the foundation for cryptocurrency adoption in California. Additionally, handling large amounts of cash by cannabis businesses may pose additional risks.

Cannabis Industry Leading the Way in Various States

In addressing legal issues facing the cannabis industry, progressive innovations have been made. Councilmember Bartlett also noted:

By providing a cashless cannabis tax payment solution, AB 953 can reduce business costs and city security risks. With cannabis legalization, it will be a 21st-century industry that deserves a new payment system, and cryptocurrency taxation will help drive the development of emerging industries.

California has been at the forefront of crypto innovation, including being a hub for startups like Silicon Valley and legalizing medical cannabis in 1996, followed by recreational cannabis in the state 20 years later.

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