CannabisNewsWire
Editorial Coverage: In a world where legal cannabis is rapidly
becoming more mainstream, a vexing financial issue continues to
haunt the businesses and consumers taking part in this
multibillion-dollar industry; namely, what to do with all that cash
when federally chartered banks can’t accept it and credit card
companies won’t touch it. Marijuana is still a federally prohibited
substance, after all, which makes businesses that handle the highly
regulated plant outcasts when it comes to traditional banking
methods. This aversion to risk, as defined by the banking sector,
is actually a welcome opportunity for companies that cater to
“high-risk” industries, such as the rapidly expanding and lucrative
legal cannabis market. Among the top players enabling marginalized
cannabis-related businesses and other high-risk industries to
thrive are Global Payout, Inc. (OTC: GOHE)
(GOHE
profile), Medical Cannabis
Payment Solutions (OTC: REFG), CannaRoyalty Corp.
(OTCQX: CNNRF), SinglePoint, Inc. (OTCQB:
SING), and MassRoots, Inc. (OTCQB:
MSRT).
Billions Upon Billions
While the legal cannabis industry may just be getting started in
the United States, it is expected to generate nearly $57 billion in
worldwide sales by 2027, according to a Forbes article
quoting Arcview Market Research (http://cnw.fm/C7wd8). The adult use market for
recreational cannabis will get the lion’s share of that spending —
67 percent — while medicinal cannabis gets the remaining 33
percent. And that’s just the beginning, according to Arcview’s
analysis, with the largest group of those cannabis spenders coming
from North America. These folks are expected to shell out $9.2
billion in 2017 and more than $47 billion a decade later. That, as
Carl Sagan would say, is “billions upon billions” of big bucks.
Is Cash Really King?
Lack of access to traditional banking services means legal
cannabis businesses and their customers are usually dealing solely
in cash. Some cannabis dispensaries can conceivably do $1 million a
month in business, attorney James Smith says (http://cnw.fm/XWWx4).
"You don't want that to be cash,” said Smith, a founding partner
at Smith, Costello and Crawford, a firm which represents cannabis
companies. “The state doesn't want it, the industry doesn't want
it, even the federal government doesn't want it."
Keeping large amounts of cash onsite raises the risk of theft or
embezzlement and increases the cost of security measures. MoneyTrac
Technology, Inc. (“MTRAC”), a partner of Global
Payout, Inc. (GOHE), is taking aim at solving this
industry-wide concern with a full-service banking solution powered
by GreenBox blockchain technology. MTRAC’s payment solution offers
cashless methods to process payments for consumers and gives
business owners the ability to remit payments to vendors, employees
and other business affiliates.
Key to Cashless™
Unbanked cash presents a host of problems for business owners
and the states in which they are licensed to do business. Even
Canada, which is poised to legalize recreational cannabis for adult
use by the end of the summer, is struggling with the issue since
many of its largest banks steer clear of the cannabis industry.
That may change in Canada once full legalization takes place,
according to an article in Marijuana Business Daily
(http://cnw.fm/wQi0V).
But why wait for traditional financial institutions to solve a
problem when several companies have been working hard to provide a
solution? Global Payout’s MoneyTrac Technology specifically offers
alternative fintech banking solutions to these high-risk industries
in the United States, Canada and Mexico.
"The goal of MTRAC from the beginning has been to leverage the
different technologies available to us to remove the use of cash as
the primary form of payment throughout the cannabis industry,” said
MTRAC CEO Vanessa Luna in a news release (http://cnw.fm/xX6yC). “While other companies have
struggled to find supportive financial solutions, MTRAC opted to
take a different approach, and one that has relied heavily on the
use of blockchain technology to address this problem for a massive
and growing industry."
Inside the Box
MTRAC’s revolutionary payment process for businesses operating
across a wide array of alternative high-cost and high-risk
industries utilizes closed-loop blockchain technology. Simply put,
merchants and consumers are assured that currency moved into
MTRAC’s system, either in the form of cash or through a
debit/credit card via MTRAC Kiosk or a customer/merchant e-wallet,
is converted to a digital representation of the currency’s value
using secure, encrypted digital keys.
The MTRAC Kiosk, powered by the forward-thinking blockchain
technology solutions offered by GreenBox, can be placed in any
business that wishes to go cashless, making it simple and easy for
merchants and customers alike to complete financial transactions.
The concept is already generating buzz as MTRAC and GreenBox share
their innovative payment solution with industry leaders in fields
such as energy, water-tech, IoT, mobile and electronic payments,
and security technologies (http://cnw.fm/z5UcA).
Looking Back
Several years ago, the Federal Deposit Insurance Corporation
(FDIC) issued a Financial Institution Letter aimed at encouraging
depository institutions to serve their communities by taking a
risk-based approach when considering customer relationships instead
of declining to provide banking services to an entire category of
customers. That was in 2015, and, to date, little has changed when
it comes to whether banks and credit unions are interested in
welcoming the cannabis industry with open arms. Out of more than
16,000 FDIC and NCUA depository institutions registered in the
United States, a 2017 federal report on marijuana banking noted
only 400 of the institutions currently work with marijuana-related
businesses (http://cnw.fm/s3TXu).
Catering to these “unbankable” businesses is exactly what Global
Payout planned to do in 2015 when MoneyTrac Technology Inc. was
brought under the company’s banner. The goal, then and now, is to
focus on the development of financial technologies that
specifically address many of the challenges that enterprises in a
variety of alternative and high-risk market sectors face in
processing financial transactions. MTRAC may be one of the most
configurable and intuitive financial technology platforms available
to alternative and high-risk enterprises, providing solutions that
effectively manage everything from pin debit and virtual currency
to compliance and cash flow logistics.
Playing a Pivotal Role
MTRAC’s commitment to working with the burgeoning cannabis
industry is illustrated by the company’s recent announcement that
it has joined the National Cannabis Industry Association at its
highest membership level. The NCIA connects organizations, builds
networks and serves as an advocate for the cannabis industry
nationwide. Advocacy is encouraged as the cannabis industry
continues its push for legitimacy and legalization, the NCIA states
on its website (https://thecannabisindustry.org/).
"NCIA truly represents one of the most important and valuable
associations in our industry,” Luna said in a new release published
on CannabisNewsWire (http://cnw.fm/bCD0N). “Their hard work and advocacy
over the past 17 years has played a pivotal role in helping to pave
the way for the growth and continued legitimacy of this industry as
well as in being a crucial resource to the thousands of businesses,
such as MoneyTrac, who are committed to conducting business the
right way, in an industry that remains highly scrutinized.”
The Home Stretch
Canada’s push to legalize recreational cannabis for adult use is
being carefully watched on many fronts. Canadian lawmakers are
still in the process of fine-tuning and adjusting the legislation
that many expect to be in full force by September. Canadians are
being assured that the government is planning “orderly
implementation nationwide” with an overriding policy goal of
keeping cannabis out of the hands of children (http://cnw.fm/0jyV7).
Even if select Canadian banks decide to finance cannabis
operations or purchases, many are concerned about jeopardizing
their operations based in the United States, where cannabis remains
illegal at the federal level (http://cnw.fm/4PkeV).
Opportunity Beckons
The launch of MTRAC’s full-service banking solution, powered by
GreenBox blockchain technology, offers the cannabis industry and
other high-risk sectors cashless payment options they desperately
need, Luna said (http://cnw.fm/3neCm).
Joining the effort to provide cannabis dispensaries and related
businesses with payment solutions is Medical Cannabis
Payment Solutions (OTC: REFG). After working with targeted
participants in the state-sanctioned cannabis industry, Medical
Cannabis Payment Solutions has rolled out its payment system to
serve the global medical cannabis and banking industry.
“This fully concludes our transition from development stage and
government relations to revenue stage,” said Jeremy Roberts, CEO of
Medical Cannabis Payment Solutions. “We’re excited to bring our
services to the industry and to bring increased value to our
shareholders.”
Medical Cannabis Payment Solutions was developed to solve a
major problem in state-sanctioned marijuana: banking and cashless
payments. The company’s cutting-edge payment solution allows
consumers to buy items using U.S. currency and will soon allow
Bitcoin, Roberts said in a news release (http://cnw.fm/lh4xO).
Building and supporting a diverse portfolio of businesses ready
to grow in high-value areas of the cannabis sector is the aim of
Ontario-based CannaRoyalty Corp. (OTCQX: CNNRF).
These areas include research and brand development, devices and
intellectual property. In 2017, CannaRoyalty co-launched Trichome
Yield Corp. (“Trichome”) to be a preferred asset-backed lending
partner to emerging and established Canadian and global cannabis
companies.
CannaRoyalty also recently announced its acquisition of three
California cannabis-related businesses: RVR, a large-scale
distributor of both medical and recreational cannabis brands; Alta
Supply, a smaller distributor of medical marijuana; and Kaya
Management, a maker of edibles and vaporizers (http://cnw.fm/rU7cL).
Providing full-service mobile technology solutions keeps
SinglePoint, Inc. (SING) in the spotlight as the
company capitalizes on two high-performing market sectors: legal
cannabis and cryptocurrencies. In a March 7, 2018, shareholder
update, SinglePoint announced the soft launch of its SingleSeed
Bitcoin payments solution. SingleSeed stands to address the lack of
viable payment options for the cannabis industry by providing a
user-friendly, easy-to-track transactional platform that enables
merchants to accept non-cash payments (http://cnw.fm/dht1X). SinglePoint also recently
announced the official launch of SingleSeed’s newly updated
website, which is focused on selling cannabidiol (“CBD”) based
products direct-to-consumer (http://cnw.fm/f9D4M).
MassRoots, Inc. (OTC: MSRT) has developed a
technology platform for the cannabis industry and its users. The
company’s technology platform enables cannabis consumers to join a
social network, which is accessible through several portals and
mobile apps. Cannabis enthusiasts can post reviews, follow their
favorite dispensaries and stay connected with the cannabis
legalization movement (https://www.massroots.com/). MassRoots recently formed
a subsidiary focused on utilizing blockchain in the cannabis
industry, which pairs well with the company’s marketing strategy of
building technology platforms for the regulated cannabis industry.
The company’s mobile apps have more than 1 million registered
users.
Economic Impact
The ongoing regulatory uncertainty that surrounds legalized
cannabis in the Unites States. can be a divisive conversation among
lawmakers, the cannabis industry and members of the public. It is a
topic not likely to go away as more states consider measures to
legalize cannabis in some form or another. One thing all parties
can agree on, however, is businesses that work mainly in cash
invite a myriad of problems. Reducing that risk by providing
alternative cashless payment solutions offers safeguards
traditional banking isn’t able or willing to give at this time.
For more information on Global Payout, Inc.,
please visit: Global Payout,
Inc. (GOHE).
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides
(1) access to our news aggregation and syndication servers, (2)
CannabisNewsBreaks that summarize
corporate news and information, (3) enhanced press release
services, (4) social media distribution and optimization services,
and (5) a full array of corporate communication solutions. As a
multifaceted financial news and content distribution company with
an extensive team of contributing journalists and writers, CNW is
uniquely positioned to best serve private and public companies that
desire to reach a wide audience of investors, consumers,
journalists and the general public. CNW has an ever-growing
distribution network of more than 5,000 key syndication outlets
across the country. By cutting through the overload of information
in today’s market, CNW brings its clients unparalleled visibility,
recognition and brand awareness. CNW is where news, content and
information converge.
Receive Text Alerts
from CannabisNewsWire: Text "Cannabis" to
21000
For more information please visit https://www.CannabisNewsWire.com and
or https://CannabisNewsWire.News
Please see full terms of use and disclaimers on the
CannabisNewsWire website applicable to all content provided by CNW,
wherever published or re-published: http://CNW.fm/Disclaimer
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by CNW are
solely those of CNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable CNW for any investment
decisions by their readers or subscribers. CNW is a news
dissemination and financial marketing solutions provider and is NOT
registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, CNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer’s filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer’s securities, including, but not
limited to, the complete loss of your investment.
CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. “Forward-looking statements” describe future expectations,
plans, results, or strategies and are generally preceded by words
such as “may”, “future”, “plan” or “planned”, “will” or “should”,
“expected,” “anticipates”, “draft”, “eventually” or “projected”.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company’s annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and CNW undertakes no
obligation to update such statements.
Source:
CannabisNewsWire
Contact:
CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.net
Medical Cannabis Payment... (CE) (USOTC:REFG)
Historical Stock Chart
From Nov 2024 to Dec 2024
Medical Cannabis Payment... (CE) (USOTC:REFG)
Historical Stock Chart
From Dec 2023 to Dec 2024
