Cannabis companies are largely behind the Web3 curve, but in recent months, several leading cannabis companies in the Web3 ecosystem have joined the old guard. The link between cannabis and Web3 may not be clear at first glance, but both industries are relatively new, semi-regulated and attract some of the most talented talent in the world. This paper focuses on cryptocurrencies for cannabis and payment systems.

Cannabis Companies and Web3: A Brief Introduction

Not surprisingly, enthusiastic cannabis companies that are comfortable operating in their quasi-regulated industry are reluctant to add additional regulatory uncertainty to their business models by participating in Web3 applications in their companies.

Both industries were largely born of the stick-it-to-the-man contraception movement and have deep global roots and stratified international communities. Many groups in both communities focus on social justice. And both communities (and often their service providers) are still working on eggshells, waiting for strong and definitive guidance from local and national governments. This is the world we operate in, and it is not the case that a complete legal explanation of any ecosystem appears at any given moment.

The company's leading cannabis fintech on the web3:

Cryptocurrencies

The first cannabis companies Web3 started in 2014 and there are many more: PotCoin (POT), CannabisCoin (CANN), HempCoin (THC) and DopeCoin (DOPE). All this arose in response to state-owned legal cannabis brands operating almost exclusively on money.

PotCoin focuses on the adult market in Colorado and includes Web3 with PotCoin rewards and philanthropy through the PotCoin Foundation.

CannabisCoin focuses on improving transactions in medical marijuana dispensaries.

HempCoin focuses on B2B transactions with farmers, manufacturers and medical and leisure outlets. DopeCoin seeks to facilitate the virtual black market Silk Roads for the sale of marijuana worldwide. DopeCoin is based on a proof-of-stake validation model that allows verifiers to earn additional DopeCoins as a reward for supporting the DopeCoin network.

The total market capitalization of these four best cannabis cryptocurrencies is only $ 3 million, and although each has experienced an explosion after ICO (first currency bid), its market capitalization has always been the one that has disappeared since then.

These cannabis cryptocurrency companies are still working to reduce the market burden on the sector. Crypto exchanges such as these can provide deposit services, much like banks, but with shorter fees and access to many different payment options across borders and within fiat and virtual currencies. Diverting industry from money will reduce overall market risk and allow legislators, regulators and industry players to focus on improving the business environment, creating better products and increasing efficiency. industry standards worldwide.

The tax application is also not rejected. Cryptocurrency transactions are part of the public management system, which allows supervisors to quickly monitor companies and individuals for tax compliance.

The leading cannabis fintech companies on the web3: payment

processors

The hemp industry has persistent problems with payment processing, but the current hemp fintech area outside of Web3 includes CanPay, Hypur, Aeropay, Dutchie and KindPay. They use ACH transfers as prepaid cards or more creative payment processing methods, such as revolving credit lines or no ATM transactions outside credit card schemes, to embarrass them for cannabis.

Many FinTech cannabis web3 companies are developing competitive cannabis sales solutions and application programming interfaces ("APIs"), which are bridges that allow different software or computer systems to interact. These APIs hope to bridge the deep gap between traditional banking, cryptocurrencies and cannabis to facilitate all types of B2B and B2C transactions with the performance of web3 cryptocurrencies that they can use.

As expected, this business model presents many barriers to entry because there are different mixes in the US. current and future cannabis and financial regulations. These types of cannabis fintech companies are required to work with existing licensed financial institutions or are qualified by state and federal regulators, such as Coinbase, with licenses to transfer money from many US states, and are also registered as a broker dealer.

If we know anything about cannabis and Web3 so far, it's that the flow of business is more than the flow of regulation. Smart entrepreneurs continue to ask good questions and change their business models in the wind.