Canada will be celebrating its 150th national birthday on July 1st. Canadians all over the country will be taking part in concerts, festivals, fireworks and picnics with their loved ones and fellow Canucks. Aside from these celebrations, there is one more thing Canadians should rejoice about.
According to reports from CBC News and other Canadian news outlets, the 150th birthday of the country will also mark the announcement of the bill to legalize marijuana by July 1, 2018. The validation gives Canadians a stronger reason to smile and celebrate independence on Canada Day.
The Marijuana’s Journey to Ratification
If the announcement is made on July 1st it would mark a successful step to culminate marijuana’s 110-year journey to legalization. It was in 1908 when Canada prohibited marijuana and classified it as a drug because of riots from opium workers who wanted to receive compensation.
What does legalization of marijuana mean?
Authorizing marijuana in the country will need stringent laws to regulate its sale and use including:
- Sales control to be granted to provinces – Ottawa will provide the license for producers while the government will handle safety and security of the marijuana supply. However, rural areas will decide how marijuana will be used and sold. Additionally, provincial governments will also dictate the price, expected to be around 10 dollars a gram to discourage third party street dealers. Moreover, the provincial government will also have the right to increase the age requirement for the cannabis use from 18 years old to their desired age that is appropriate.
As Prime Minister Justin Trudeau affirms,
“The marijuana legalization pursues two important tasks. The first is to protect our kids…it is easier to buy a joint for a teenager than it is to buy a bottle of beer. It is not right. Secondly, we know that criminal organizations and street gangs are making billions of dollars off of the sale of marijuana. We feel that regulating it, controlling it will bring the revenue out of the pockets of criminals and put it into the system…”
- Citizens can plant in their backyards – The new law to be implemented will also allow Canadians to grow their own but will be limited to four plants per household.
Marijuana and the Canadian Economy
There are a number of benefits that legal marijuana can bring to Canada and our people. Deloitte Consulting, the advisory arm of one of the Big Four accounting firms, forecasts that the legalization of marijuana will boost its economy by $22.6 billion per year including sales of ancillary products. Business taxes, increased tourism and pot paraphernalia will be the main contributors to the economy’s growth. The report also suggests that marijuana sales can be higher than hard liquor and equal to that of wine.
The world is changing dynamically, technology is advancing at a rapid pace and humans are becoming more explorative. What makes the current world market even more interesting is the fact that we now have blockchain technology executing transactions almost instantaneously. As Canada excels forward to becoming a center for the marijuana industry, it can use the blockchain technology to support its economy and create additional employment opportunities. Canadian banks can explore the benefits of security and trust involved in executing cryptocurrency transactions.
Cannabis entrepreneurs have already created cryptocurrencies such as Potcoin(POT), Dopecoin(DOPE), Cannacoin (CCN) and Cannabiscoin(CANN) as an attractive solution. The following table illustrates summary statistics of the mentioned cryptocurrencies:
POT value has soared over the last three months due to heightened awareness and trading activity in May 2017. It now surpassed the $30 million dollar market cap mark and is trading close to all-time highs.
How Will Legal Marijuana Affect the Use of Cryptocurrency?
Cryptocurrency has come to existence because of countries like Canada declaring marijuana illegal. This allowed Cannabis-related businesses to resort to the use of Potcoin, Dopecoin, Cannabiscoin and Cannacoin-like cryptocurrencies for payment processing. Once marijuana becomes legal, the industry-specific currencies that secure transactions will penetrate brick-and-mortar marijuana stores. Currently, marijuana businesses in Canada have been paying employees, bills, and taxes in cash. This means the use of credit and debit card payments from clients aren’t allowed to be received and no approvals would be given to business for loans and mortgages. Furthermore, these businesses are storing a significant amount of physical cash locally, which makes them a target for theft and the businesses incur additional costs to store and move cash. Fascinating and confusing at the same time, here are what we can expect with a much- awaited legalization:
- Digital currencies will help marijuana businesses to process their transactions legally. Although the government will allow sales and use, banks may not be quick enough to have included banking features for cannabis-related businesses. In this case, cryptocurrencies will find their way beyond online transactions.
- Dopecoin and Potcoin developers will increase security measures as operations become legally transparent.
- Increased transparency in marijuana industry will reduce cryptocurrency volatility.
- Canada should strengthen its global anti-money laundering framework as it becomes a world leader in blockchain technology.
- Software developers would be encouraged to create a more efficient system by balancing the risks and benefits of cryptocurrency use in the marijuana trade.
Freedom and legalization of marijuana are two important reasons why the world is now beholding Canada with envy. Indeed, as we all look forward to Canada’s transformation into a global hub for economic and technological progress, we also hope for better medical and health interventions that cannabis can bring. Thank you, Canada and more years of freedom and progress to come!
Next year this time will also be a very special day for us as it will be our first year of launching Crypto Canucks! We are looking forward to creating a community of Crypto Canucks and sharing the latest news, analysis and research insight and ideas from a group of passionate enthusiasts.
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