“CannTrade is the first cannabis-specific B2B marketplace and CRM platform to offer a digital payment solution to cannabis businesses including cultivators, manufacturers, distributors and dispensaries” said the press release. The partnership will now allow CannTrade clients to “make payments through secure blockchain technology that uses Dash digital currency as an alternative to cash”.
Ken Ramirez, co-founder and CEO of Alt Thirty Six, mentioned how this helps advance the cannabis industry.
“We are thrilled to be opening up access to our platform through CannTrade, a major force in the cannabis industry. By providing a seamless, easy-to-adopt payment solution, our goal is to change the way cannabis businesses across the country operate and to ultimately take the industry fully cashless.”
CannTrade President Adam Holub discussed how the partnership helps solve their cash problem.
“The cannabis industry has a significant cash problem, especially when it comes to the large, wholesale transactions that are commonly facilitated through our platform. We are partnering with Alt Thirty Six to provide a much-needed alternative to cash, alleviating the insecurity and inconvenience that so many of our clients currently face. This partnership will revolutionize the way our clients approach payments, and we’re excited to be a part of this substantial step forward in the industry.”
Navigating a difficult regulatory space
Recreational cannabis legalization has only relatively recently occurred in states throughout the Unite States and is actually still illegal at the federal level. Due to the pseudo-legality, the industry is tightly regulated at the state levels and thus requires creative solutions and intense record keeping, which has lead to a rise of technology companies attempting to provide solutions.
The partnership of Dash and Alt Thirty Six is attempting to solve the banking problem in the US cannabis industry. Since it is illegal at the federal level, most banks have been hesitant to open accounts, let alone lend money, for cannabis businesses due to fears of a crackdown by authorities. This has not stopped cannabis industries from operating and has instead forced them to operate cash-only and thus hire armed guards due to the security threats that large amounts of cash can create. Alt Thirty Six, using Dash, allows cannabis businesses to avoid the risks associated with dealing in all cash without sacrificing low transaction fees, fast transaction times, and security.
The cannabis industry in the US also has to deal with tight compliance issues, which makes personnel and inventory management for businesses even harder. CannTrade is attempting to solve this issue with a client relationship management service and business-to-business marketplace for cannabis businesses to legally interact with each other and customers. Now, with Alt Thirty Six and Dash, they are able to offer their 400+ clients a seamless and safe way to handle payment processing.
Dr. Andrew Kerklaan, founder and CEO of Dr. Kerklaan Therapeutics, one of CannTrade’s clients, spoke highly of the added benefit the partnership will bring him and his business.
“As an avid CannTrade client, we use their platform to manage accounts and orders and to facilitate large transactions. Their partnership with Alt Thirty Six will make our payment process seamless, convenient and, most importantly, more secure. Due to the current state of the cannabis industry, we feel more comfortable using digital payments over cash, and we’re thrilled that CannTrade and Alt Thirty Six are implementing an easy way to do so.”
Dash helps provide solutions for merchants and consumers
The above illustrates that despite difficulties that arise from tight government controls, innovation still finds a way to provide solutions for other entrepreneurs and consumers. Dash helps facilitate that innovation through multiple channels. Dash is able to help merchants escape the banking embargo and excessive operating premiums that accompany large-scale cash-only businesses. Dash can also provide merchants an easy, fast, inexpensive, and secure way to handle finances, which saves merchants money that can then be passed onto consumers. Dash can also benefits consumers, directly, since they will no longer have to carry large amounts of cash to make large cannabis purchases. Finally, but not least, Dash is able to directly assist in providing solutions via its treasury and proposal system, where entrepreneurs have the ability to submit an idea to the community for it to be voted on for funding. This process is how the Alt Thirty Six and Dash partnership originally came to fruition.
Alt Thirty Six adopting Dash as its preferred currency sent a signal that some market participants recognized the potential Dash has to facilitate transactions in everyday life. This most recent integration signals that even more market participants are beginning to recognize the full potential of Dash.