Two city councilmembers in California became the 1st elected officials to use cryptocurrency to obtain marijuana from a dispensary—at least publicly—on Tuesday.
Berkeley City Councilmember Ben Bartlett and Emeryville City Councilmember Dianne Martinez visited the Ohana Cannabis shop in Emeryville to demonstrate how the technologies can lower transaction costs and strengthen monetary transparency.
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Berkeley Councilmember @BenBartlettCA and Emeryville Councilmember @EmeryvilleDi develop into the 1st elected officials to obtain cannabis with cryptocurrency in history (most likely, idk) with enable from @EvilleAlly pic.twitter.com/gRTHFW2Zvc
— Rigel Robinson (@RigelRobinson) September 11, 2019
The technologies they employed, named stablecoin, is a kind of digital currency that has “price steady characteristics” linked to the U.S. dollar, which means the sale and tax proceeds had been settled in a way that is constant with money.
Blockchain Advocacy Coalition, which is backing the technologies, is advocating for legislation that would allow regional jurisdictions in California to “determine and implement a approach by which a licensee beneath [the state’s legal cannabis program] might remit any city or county cannabis license tax amounts due by payment making use of stablecoins.”
“By offering a money-totally free approach of cannabis tax collections, AB 953 can lower charges and security dangers for cities and companies,” Bartlett stated in a press release. He added that the marijuana sector is “a 21st-century industry” that “deserves 21st-century legislation.”
“Tax collections leveraging stablecoin technologies will enable bring this new sector into the light.”
In a photo taken at the dispensary, Bartlett is holding up a pamphlet for VetCBD, a low-THC, higher- CBD tincture that is employed to treat circumstances such as anxiousness and discomfort in pets. It is not clear what Martinez bought from the shop.
The bill to supply for option payment solutions at marijuana companies is timely provided that federal prohibition has produced banks skittish of servicing such providers and outcomes in a lot of firms operating on a largely money-only basis—an concern that has captured the interest of federal regulators and lawmakers on each sides of the aisle in Congress.
In California, legislation that would enable credit unions to accept cannabis company customers was pulled by its sponsor on Tuesday. Sen. Bob Herzberg (D) stated he plans to reintroduce the bill subsequent year.
“We are thrilled to create technologies that solves actual difficulties for buyers, merchants, and politicians which will enable usher in the subsequent 100 million customers of crypto,” stated Dan Schatt, co-founder of Cred and the Universal Protocol Alliance, which created the stablecoin technologies, stated.
“Not only does crypto outcome in considerable price reduction for shoppers and merchants, but it also enables hugely productive tax collection, transparency, and predictability for city and state governments,” he stated.
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Photo courtesy of Twitter/Rigel Robinson.