Anonymous asked Juan Llanos, 8/9/2016 7:31:16 AM

Do you have a view on the use of bitcoin or blockchain technology in the cannabis sector?

 

Since cannabis laws can differ between the state and federal level and since cannabis businesses cannot open basic banking accounts or access other banking services, do you have a view on the use of bitcoin or blockchain technology in the cannabis sector? 

8/10/2016 3:05:32 PM,
Juan Llanos replied:

Bitcoin as an alternative payment system is theoretically good for any value transfer in any industry. I say theoretically because there are a lot of constraints that impede its adoption, of which regulation is probably the most significant.

The uncertainty and controversy around Bitcoin would be highly compounded if it were used as a solution for the Cannabis industry. In fact, it already has proven lethal for at least one a company that was unable to reaise VC money in spite of having a great team and product.

A lot of things that are hard to change -policy, law, regulation, law enforcement attitudes- would need to change for this to be a viable combination.  Of course, entrepreneurs always have the choice of ignoring these concerns and ask for permission and deal with the consequences after the fact.