Blockchain Platform to Be Built for Canadian Cannabis Trade
It was announced on October 17 that DMG, a cryptocurrency company based in Canada, has plans to design an international blockchain platform for legalized Cannabis.
CBC, the Canadian news service, reported that recreational marijuana had just been officially legalized by the Canadian government. Previously, it was only used for medical purposes, and under previous guidelines, required a visit with the doctor and a special license.
Health Canada reports that the number of licensed producers for Cannabis in the country has reached 120 and a major grower has stated his concern regarding the lack of available labor, as well as impending complications in the supply chain that could lead to scarcity once it’s legalized, similar to problems experienced in the state of Nevada last year when it legalized weed.
Major leaders within the sector are already in negotiations with DMG over a blockchain solution. It has to be implemented with particular conditions, so DMG will be working with legacy systems and has plans to bring new members into the fold. They also intend to recall any defective products.
Dan Reitzik, DMG’s Chief Executive Officer, noted that logically blockchain would be the most effective choice for this emerging trade. He mentioned how Bitcoin is considered to be the very first application for blockchain, but when it comes to regulated products like cannabis, the best choice would be a supply chain.
The analysis provided by the company revealed that in Canada the entire industry is valued at over $20 billion, consisting of $6 billion in revenue from upwards of 10 million consumers that will use it for recreational purposes.
The food and agriculture industries are other applications for blockchain as well. A network for food tracking was just released this month using blockchain technology from tech giant IBM. The testing phase started back in August 2017, in which IBM formed partnerships with various companies including Nestle, GSF, Dole Food Company, Driscoll’s, Tyson Foods, Kroger Company, McLane, Unilever, as well as McCormick Company.
Mega retail store Walmart, along with Sam’s Club, a company within their division, also expressed interest as they announced a need for suppliers of leafy greens and they hope to create a system that’s blockchain-based in an effort to increase efficiency.
There is no doubt that the legalization of recreational marijuana will change many industries in the nation and its economy, not unlike what was seen in early adopters Colorado and Washington State. How it will change the finance sector is a question that will be answered in due time.