California has a possible solution to the problem of banks being unwilling to handle money from the state’s multibillion-dollar legal marijuana industry, one that officials say would be the first system of its kind in the nation.
Talks are underway between the state, banks and federal regulators on a plan to allow banks to serve a marijuana market that is expected to grow to $7 billion annually by 2020 in California. Starting Jan. 1, it will be legal to grow and sell marijuana for recreational and medical uses.
State officials say without banks taking pot money, thousands of cannabis businesses will be storing and transporting billions of dollars in cash for paying employees, suppliers and state and local taxes, which could result in robberies and violence.
“We know there is a concern with having so much cash flowing around on the street in transactions for what is now a state legal product,” said Peter Williams, deputy secretary and general counsel for the state Business, Consumer Services and Housing Agency. “The administration is looking for a solution to the problem. We are all concerned about the public safety issue here, and we think this is an idea to help mitigate that problem.” [Read more at The Los Angeles Times]
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Notify me of follow-up comments by email.
Notify me of new posts by email.
In a sign that Europe’s cannabis market is gaining traction, the Frankfurt-based operator of a website that pairs patients with marijuana-prescribing doctors has closed a seed funding round while adding one of the industry’s biggest-name executives to its board. The Bloomwell Group, a holding company for the marijuana telemedicine platform Algea Care, obtained more than…
Small-scale marijuana businesses in New Mexico would receive access to publicly financed loans of up to $250,000 in an effort to promote social and economic fairness, under a proposal unveiled Thursday. The New Mexico Finance Authority suggested a $5 million line of credit to licensed cannabis microbusinesses, seeking preliminary approval from a panel of state…
Nearly three years after the first medical marijuana dispensary opened in Ohio, slightly over half of the state’s marijuana card holders say they are dissatisfied with the program. Those are the results of a late September report prepared by the Drug Enforcement and Policy Center at Ohio State University’s Moritz College of Law, which tracks the state’s…
PRESS RELEASE The combination of the two companies will expand Pipp’s position as the leading provider of Indoor Commercial Grow Racks, Greenhouse Structures and Air Circulation Systems in North America. Walker, Michigan – October 18, 2021 – Pipp…