Please check out latest news, expert comments and industry insights from Coinspeaker's contributors.
A new digital currency, Potcoin, is able to make marijuana trade in Colorado and Washington safer.
Three enthusiasts named Hasoshi, Mr. Jones, and Smokemon 514 have worked out a new cryptocurrency, Potcoin. It is pretty similar to Bitcoin that is used to store value. Potcoin was launched in January, 2014.
The main goal of new currency is to defy conventional banks and money laundering authorities, and what is more, to build a safer and more convenient way for marijuana dispensaries to deal with daily transactions.
There is a need in the new currency because conventional financial systems are too slow to deal with change as marijuana was recently legalized in Colorado and Washington. Plus that, the federal law and Controlled Substances Act overhang the state law and conventional businesses see marijuana as something mistrustful.
Dispensaries that earn money growing and selling an illegal product faces obvious problems with the system that treats them with apathy and malice. At the moment, some amount of skepticism in respect to a new range of legitimate businesses may be reasonable.
The modern world requires new digital solutions and Potcoin, actually, can be helpful in this case as it can act as a proxy for the banking system. As robbers know that most of their cash reserves will be digitized, they can be less disposed to visit dispensaries. So safer and thriving marijuana trade will be more beneficial for consumers and growers.
Of course, everyone is interested, how Potcoin is going to avoid Mt. Gox’s problems. But Potcoin creators assure that “whenever there is money involved, there is a higher level of accountability.”
What is more, they hasten to point out that they are not the only ones in the trade of crafting cryptocurrencies for marijuana, but that they are the only ones making an extensive effort to create a public community of users, including their own custom subreddit. They are sure that public control and censure is a way to stay in check.
The biggest surprise for skeptics is that Potcoin creators are determined to end the war on drugs war as it appears the possibility of destigmatizing hemp products.