Fortress Payment Technologies, a merchant processor, announced in 2019 that it would no longer be able to accept Visa payments for cannabidiol (CBD)-related products. The announcement only gave merchants eight hours’ notice of the change; this is just one of many financial challenges that the cannabis industry has faced when attempting to process transactions for cannabis-related products.
Unfortunately, because cannabis legislation and regulations are still evolving, the industry is constantly confronted with these challenges. To avoid any potential risks, most banks, credit card companies, and payment providers will avoid working directly with cannabis transactions, even in areas where cannabis is now legal.
Because of the difficulties associated with transactions, many businesses prefer to accept cash as their standard payment method. However, storing cash causes a slew of issues for businesses. Businesses’ security is jeopardized by the increased possibility of theft, as is their employees’ safety when transporting cash.
To address the issue that the cannabis industry has been experiencing, London-based startup Quannabu has launched a blockchain-based decentralized payment network for cannabis-related transactions. Quannabu also has a payment platform called Quannabu Pay, which is built on the blockchain and enables businesses and consumers to transfer funds without any financial barriers.
The company’s financial solution for the cannabis industry will include not only its own cryptocurrency, but also a secure infrastructure. Because many countries’ legislation is still in the works, regulations are constantly changing, resulting in a complex and sometimes disjointed supply chain. As a result, authorities will have a more difficult time tracking the supply of cannabis.
Quannabu’s blockchain technology has enabled the company to develop a product that reduces illegal activity by allowing law enforcement to track the source and supply of all cannabis products. This means that governments can track the movement of cannabis and halt any illicit circulation, freeing up space for a safer and more regulated market.
The transparency into the supply chain that Quannabu provides will benefit not only law enforcement, but also consumers, manufacturers, and suppliers. The company is increasing trust and making the industry safer as a whole by implementing this solution.
In addition to the company’s supply chain solution, token offering, and secure payment platform, it also runs Quannabu Labs, a groundbreaking testing laboratory dedicated to CBD-related activities on and off the blockchain—the world’s only operation of its kind.
Finally, the company is working to establish its own hemp farm in order to grow pharmaceutical-grade hemp. The facility will have certified testing equipment to ensure that its plants are tested consistently and accurately.