The legal marijuana market has had difficulty establishing banking relationships, given the disparities in local and federal regulation of cannabis sales. SinglePoint Inc. is developing a bitcoin-based option to address this concern.
SinglePoint is working with First Bitcoin Capital Corp., a bitcoin and blockchain technology company, to develop a bitcoin-based payment system for cannabis sellers.
“There is now tremendous momentum and demand for bitcoin acceptance as an alternative form of payment," Greg Lambrecht, SinglePoint's CEO, said in a June 6 news release. "This joint venture with First Bitcoin Capital is perfect timing. Bitcoin payments are catching on and cannabis dispensaries need a solution fast.”
The partners plan to distribute their offering as a downloadable application for point of sale machines.
The offering would compete with other pot payment innovations such as cashless ATMs and dedicated prepaid cards.