Bitcoin for pot: encrypted weed trusts.
Author | Brown, Elizabeth Nolan |
Position | Citings - Brief article |
AS THE DIGITAL currency protocol Bitcoin grows in usage and notoriety, a host of other cryptocoins is cropping up. But far from aiming to usurp the fiber alt-coin, many of these are designed for industry- or location-specific use. Newcomers such as PotCoin (launched in January 2014) were created to facilitate secure, peer-to-peer transactions in the legal cannabis community. Cannacoin and HempCoin have similar aims, although so far PotCoin is most popular. (A fourth newcomer, DopeCoin, is aimed at illegal drug marketplaces.)
Medical or recreational marijuana is now legal in 20 states and the District of Columbia. But those growing and selling weed are often barred from working with banks and other traditional financial services, which fear being prosecuted under federal law. Pot-oriented businesses are left to deal exclusively in cash, which can be inefficient and...
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