The Medicinal Cannabis (R)evolution

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However, cryptocurrency is simply one of the many options available using the more expansive blockchain technology. What may be more beneficial for the burgeoning industry is its adoption of the broader blockchain technology. The advantage of blockchain is its ability to provide a decentralized, encrypted ledger to store records in an efficient, verifiable manner without requiring assistance from intermediaries. Consequently, it would be able to oversee medicinal cannabis operations along the entire supply chain from cultivation, from cultivation to its ultimate sale. Cashless ATMs Another innovation which has emerged to deal with banking constraints at the domestic level for medicinal cannabis related businesses has been the introduction of cashless ATMs. Cashless ATMs operate similar to a point of sale terminal, however they do not rely on proprietary networks such as Visa and MasterCard. Users of cashless ATMs can swipe debit or credit cards but rather than receive cash, a voucher or scrip is given to the user, who can then use it to redeem products from a store. There has been increasing use of cashless ATMs to facilitate the purchase of medicinal cannabis at the domestic level. Whilst this may address retail purchases, large transactions from investors and payments by vendors would be unable to utilise this system. Additionally, cashless ATMs have been shrouded in controversy as they have been known to be used for not only for the purchase of legal medicinal cannabis but also funding illegal activities, thereby increasing the risk profile of institutions offering this type of service. For such a system to operate effectively, there will be need for a strong regulatory and supervisory framework to mitigate the associated risk. 4.5 The Changing Landscape In September 2019, the US House of Representatives passed the Secure and Fair Enforcement Banking Act (SAFE), which seeks to protect deposit institutions that provide financial services to cannabis related businesses and service providers. It is anticipated that the passage of the SAFE Act will help banks better serve the cannabis industry. Whilst this move does not legalise cannabis at the federal level, it is however an indication of the favourable consideration being given to the industry; the recognition that success of the industry would only be viable with access to adequate banking services. The American Bankers Association, in its letter dated September 2019, supported the SAFE Bill and noted that by providing the cannabis industry with access to the