In 2019, merchant processor Fortress Payment Technologies announced that it could no longer accept Visa payments for cannabidiol (CBD) -related products. The announcement only informed traders of the change for eight hours. This is just one example of the many financial hurdles the cannabis industry has faced in processing transactions for cannabis products.
Unfortunately, as laws and regulations in the cannabis industry continue to evolve, the industry is constantly dealing with these obstacles. To avoid potential risks, even in areas where cannabis is now legal, most banks, credit card companies, and payment providers avoid dealing directly with cannabis transactions.
Due to difficulties with transactions, many companies tend to use cash as their default payment method. However, holding cash presents a number of problems for businesses. Not only the security of companies is endangered by the increased risk of theft, but also the security of their employees when transporting cash.
To provide a solution to the problem facing the cannabis industry, London-based startup Quantabu has launched a decentralized payment network for cannabis-related transactions on the blockchain. Quanabu also has a payment platform called Quanabu Pay, which is based on the blockchain and allows businesses and consumers to transfer money seamlessly without financial hurdles.
The company’s financial solution for the cannabis industry will not only have its own form of cryptocurrency, it will also have a secure infrastructure. With legislation still in the works for many countries, the regulations are constantly changing and have created a complex and sometimes disjointed supply chain. This means that it is harder for authorities to track the supply of cannabis.
Thanks to Quantabu’s blockchain technology, the company has developed a product that minimizes illegal activity by allowing law enforcement to track the source and supply of all cannabis products. This means governments can track the movement of cannabis and stop any illicit proliferation, making more room for a safer and more regulated market.
The supply chain transparency that Quanabu provides will increase the visibility of the supply chain not only to law enforcement agencies, but also to consumers, manufacturers and suppliers. With this solution, the company strengthens trust and creates an overall safer industry.
In addition to the company’s supply chain solution, token offering, and secure payment platform, it also operates Quannabu Labs, a groundbreaking test lab dedicated to CBD-related activities inside and outside the blockchain – the only one of its kind in the world.
Finally, the company is also working on setting up its own hemp farm to grow pharmaceutical-grade hemp. The facility will have certified test equipment so that it can consistently and accurately test its facilities.