Arizona attorney general OKs digital medical cannabis payments

Arizona Attorney General Mark Brnovich approved a trial program allowing digital payments to medical marijuana dispensaries,  a move that could significantly influence the way the state’s unbanked MMJ firms transact business in the future.

Brnovich noted in a news release that an Arizona startup, Alta, will allow cash-intensive businesses to make and receive digital payments without a bank.

Alta is a private financial services “club” that provides digital currency for licensed medical cannabis providers and vendors.

Here’s what you need to know:

  • Alta’s digital tokens allow members to safely transfer cash, according to the company. Tokens can be redeemed for cash.
  • Instead of cash, members can pay each other using a proprietary blockchain-based digital currency.
  • Smartphone or computers are used to access the exchange and complete transaction.
  • The tokens never change in value. One token equals $1.

Brnovich approved Alta to enter Arizona’s FinTech Sandbox.

Six other groups are already enrolled in the program.

“The cash economy for legal cannabis in Arizona exceeds $350 million annually,” Sarah Wessel, co-founder and chief operating officer of Alta, said in a statement.

“These are legitimate companies, innovators and entrepreneurs that are forced to operate in cash.”

One comment on “Arizona attorney general OKs digital medical cannabis payments
  1. Brian Penny on

    This isn’t the best blockchain for cannabis (or even the best one based out of Arizona, as the Dash blockchain has AltThirtySix and others). But it’s great to see technology advancing in this industry. Here are a few more examples, including StranSeek

    Reply

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