Authored by Guillermo C. Artiles and Benjamin D. Heller
Cannabis and cryptocurrency have the potential to become two of the most innovative and lucrative industries in American and international markets. While the two may be quite different substantively, the collaboration of these burgeoning industries may further promote the growth of each, and possibly rejuvenate New Jersey’s economy in the process.
The cannabis industry is predicated on the utilization of hemp and marijuana and those plants’ chemical derivatives for medicinal, research and recreational purposes. But even in states where cannabis is legal, payment systems are nonexistent because nonhemp cannabis is an illegal substance at the federal level. Cryptocurrency, while federally legal and acceptable in every state as a decentralized currency system that facilitates direct monetary-like transfers between parties, suffers from a usage problem starving for consumption.
Simply put, cannabis provides crypto with a captive, burgeoning user market, and crypto solves cannabis’ payment problem.