Washington state has introduced a measure to ban the use of Bitcoin in transactions with its burgeoning legal marijuana industry. According to GeekWire, a state senator has introduced the bill claiming that the cryptocurrency is not transparent enough for marijuana sales. Marijuana businesses have flocked to Bitcoin as an alternative to holding on to large sums of cash, since many banks will not service the pot industry as marijuana is still classified as an illegal substance at the federal level, despite being legal for medicinal and recreational use in many states. The ban on Bitcoin would force marijuana entrepreneurs back to square one when it comes to holding on to cash, which brings with it security risks and expenses. (For more, see: Is Legal Pot a Boon for Bitcoin?)
Lawmarkers Want Bitcoin Out of Pot Shops
Coindesk reports that, “under the proposed rule, businesses that work in the local marijuana industry would not be allowed to either pay for goods with digital currency or accept those kinds of payments from customers. The bill also includes a definition of “virtual currency” that explicitly targets “digital representation[s] of value used as a medium of exchange, a unit of account, or a store of value”, but excludes the “the software or protocols governing the transfer”. Bitcoin is a digital, borderless form of money that is controlled by a decentralized network of computers and not by any government or central bank. (See also: The 5 Most Bitcoin Friendly States)
Ironically, some users of online black markets for drugs have been shying away from Bitcoin and towards alternatives such a Zcash, Dash or Monero, for fear that Bitcoin is too transparent. The open nature of Bitcoin’s blockchain allows for forensic data analysis that can identify users and follow their transaction patterns. In some ways, Bitcoin may be even more auditable than cash. Some have speculated that the Silk Road, one of the largest online black markets, was brought down by the FBI by following the trail of Bitcoin transactions of its founder.
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
