Tales from the Cryptocurrency: Bringing credit card payments to cannabis
On GreenMed’s website, they explicitly state their platform is strictly for legal cannabis, but even where recreational cannabis use is legal, the financial side has always been tricky to navigate. Despite recreational cannabis use being legal in at least 8 states in America and being poised for full legalization in Canada (it’s also been decriminalized in Mexico since 2009), cannabis has faced many roadblocks in its fight for legitimacy.
In the US, banks are forbidden to work with the cannabis industry by federal law and in Canada, a third of the major banks have distanced themselves from cannabis-related businesses.
That’s why cannabis is such a draw for cryptocurrencies, and the industry already has a few dedicated to it such as Weedcoin, Cannabiscoin, and Potcoin, although there is a difference between those bitcoin-based cryptocurrencies and GreenMed. Tokens such as Cannabiscoin must be purchased on a cryptocurrency exchange and must be sold manually outside of its app in order to cash in on the value, while GreenMed gives you that option as well in addition to allowing payments by credit card, debit, and EFT (Electronic Funds Transfer).
It’s really about offering convenience and according to GreenMed, “Users will be able to pay for legal marijuana using a credit card, and even pre-purchase for pick-up, all within the app, while having the option to pay with a convenient online digital currency”.
In a way, it’s kind of like the Starbucks app for cannabis, with the option to pay via cryptocurrencies as an added benefit.
GreenMed also offers an optional debit card for merchants which allows them to “withdraw the funds directly from any ATM in the Visa network and even use it for purchases”, according to their website.
GreenMed (GRMD) accepts both ETH (Ethereum) and BTC (bitcoin) currencies and currently, 1 GRMD token= $0.20, which means that right now, 1 bitcoin equals over 21,000 GRMD. According to GreenMed’s token sale schedule, the token price will remain at $0.20 until October 30th, 2017.