OLYMPIA, Wash.—As the marijuana industry struggles to gain access to the banking system, one of its payment alternatives—digital currency—could be shot down in the state of Washington.
A bill recently introduced in this state’s Senate would prohibit marijuana businesses from using digital currencies for their transactions. Marijuana use is legal in Washington.
The bill would require that "A marijuana producer, marijuana processor, or retail outlet must not pay with or accept virtual currency for the purchase or sale of marijuana or any marijuana product," DCEBrief.com reported.
If passed and signed into law, the new rule could have a dramatic impact on the state’s marijuana industry DCEBrief.com stated.
Despite a number of states legalizing marijuana use, pot remains illegal on the federal level, which has limited the number of banks and credit unions serving the cannabis industry. The Federal Reserve, is also not granting pot businesses access to the payments system.
“For many marijuana businesses in Washington, Bitcoin has become the most reliable alternative to cash transactions. Any restriction on the use of digital currency could force many of those business owners to rely on cash to an even greater extent – and potentially increase their exposure to burglary and other crimes,” DCEBrief noted.
The bill is sponsored by Democrat Steve Conway and Republican Ann Rivers.