Ohio was the 26th state to legalize medical marijuana, now the nascent industry and legislators are fretting over how to handle payments.
State officials have proposed a “closed-loop” payment processing system similar to pre-paid debit or gift cards.
The system would require that MMJ patients and registered caregivers put money into special accounts, using checks, credit cards or cash at state-licensed liquor stores, or a state agency. It also requires the cannabis companies have bank accounts, which in most cases is not an option. Similar proposals in Hawaii have failed because the dispensaries found the only banking options available to them were too costly to allow the business to be profitable.
If the Ohio Department of Commerce moves forward with the plan, it may cause the state to potentially impose added fees and expenses to licensed medicinal businesses and possibly register patients and caregivers.
Wampei Register© – software that allows any company whether banked or not, to accept Bitcoin payments. By leveraging Bitcoin, individuals can purchase Bitcoin from an ATM, another person or an Exchange such as Uphold or Coinbase. Payments are made directly from the customer to the merchant at a fraction of the cost of other commonly used electronic payment methods (Credit Card, Debit Card or Closed-loop payment system.)
Russell Castagnaro, CEO of Wampei explains, “Ohio has passed legislation that recognizes blockchain technology as legitimate. Now the state’s cannabis businesses can accept Bitcoin payments, they will not have to use armed guards, armored vans, and duffle bags full of cash to move money. The system can be implemented without any additional fees or programs at the state level.”
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