In 2019, merchant processor Fortress Payment Technologies announced 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 example of the many financial hurdles that the cannabis industry has faced when trying to process transactions for cannabis-related products.
Unfortunately, because legislation and regulations in the cannabis industry are still evolving, the industry is consistently dealing with these obstacles. To avoid any possible risks, even in areas where cannabis is now legal, most banks, credit card companies, and payment providers will avoid working directly with cannabis transactions.
Due to difficulties faced with transactions, many businesses are inclined to use cash as their standard payment method. However, storing cash presents a whole host of problems for businesses. Not only are businesses’ security compromised with the increased possibility of theft, but also their employee’s safety when transporting cash.
To provide a solution to the problem the cannabis industry has been facing, London-based startup Quannabu has launched a decentralized payment network for cannabis-related transactions on the blockchain. Quannabu also has a payment platform called Quannabu Pay, which is built on the blockchain and allows businesses and consumers to seamlessly transfer funds without any financial hurdles.
The company’s financial solution for the cannabis industry will not only have its own form of cryptocurrency, but also a secure infrastructure in place. Since legislation is still a work in progress for many countries, regulations are constantly changing and have created a complex and sometimes disjointed supply chain. This means that authorities have a harder time tracking the supply of cannabis.
Thanks to Quannabu’s blockchain technology, the company has created a product that minimizes 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 stop any illicit circulation in its tracks, creating more space for a safer and regulated marketplace.
The transparency into the supply chain that Quannabu provides will not only increase supply chain visibility to law enforcement, but also consumers, manufacturers, and suppliers. Through this solution, the company is increasing trust and creating a safer industry as a whole.
In addition to the company’s supply chain solution, token offering, and secure payment platform, it also operates Quannabu Labs, a groundbreaking testing laboratory that is dedicated to CBD-related activities on and off the blockchain—the only operation of its kind in the world.
Lastly, the company is also working towards establishing its very own hemp farm, to farm pharmaceutical-grade hemp. The facility will have certified testing equipment so it can consistently and accurately test its plants.